Offshore Oil Exploration Projects - Current Activity
Encana is progressing with development of Deep Panuke and first production is expected in 2012.
The Sable Project has added compression to its offshore platforms and is pumping more than 450 mmcf each day into the Maritimes and Northeast Pipeline, most of it heading to the northeastern United States.
In January 2012, the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) announced the awarding of exploration rights to Shell Canada Limited for four parcels of deep-water land off Nova Scotia's south western shore. Shell has committed to spend a total of $970 million exploring those properties over the next six years. For more information, please read the press release.
The Deep Panuke offshore gas project, which includes a second pipeline to landfall, will be under development in the Sable Sub-basin area.
Nova Scotia has a plan to encourage more exploration, with new geoscience, policy, regulation and marketing. For more information please read the Nova Scotia Offshore Renewal Plan.
Deep Panuke Project
The Deep Panuke Project is operated by Encana Corporation, and involves the installation of facilities required to produce and process natural gas from the Deep Panuke field, 250 kilometres southeast of Halifax, Nova Scotia on the Scotian Shelf. Natural gas from Deep Panuke will be processed offshore and transported, via subsea pipeline, to Goldboro, Nova Scotia for further transport to market via the Maritimes and Northeast Pipeline. The design capacity of the current project is 300 MMscfd of sales gas, with first gas expected in 2012.
Sable Offshore Energy Project
Based on July 2009 numbers, the Sable Offshore Energy Project (SOEP) production is averaging around 346 Mmcf/d production.
ExxonMobil installed a compression deck on the Thebaud platform which will push the gas to shore, lower the pressure at all platforms, and mean longer production from the fields. This unit is expected to boost output by 25% and significantly increase overall project deliverability until 2016.
Royalties Update
Royalty forecasts are sensitive to volatile and unpredictable gas prices and to estimates of recoverable hydrocarbons.
Royalty forecasts are updated quarterly as new information arises or as circumstances warrant.