Offshore Energy: Deep Panuke Natural Gas Reserves
EnCana's Deep Panuke project was approved for development by EnCana's Board of Directors in October 2007.
The project involves the installation of facilities required to produce and process natural gas from the Deep Panuke field, approximately 250 kilometers southeast of 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 & Northeast Pipeline.
The design capacity of the current project is 300 MMscfd of sales gas with first gas from Deep Panuke expected in 2010.
Capital construction costs for Deep Panuke are estimated at $760 million with average annual production phase expenditures of approximately $150 million.
With estimated recoverable sales gas of 632 billion cubic feet, EnCana expects the project to continue for about 13 years.
EnCana's Deep Panuke contracting opportunities are comprised of five key elements including:
- Drilling and Completions;
- Subsea Infrastructure;
- Export Pipeline;
- Production Field Centre (PFC); and
- Ready for Operations and Long Term Operations.
To date EnCana has awarded numerous contracts for categories as Diving/ROV Services, Engineering & Technical Services, Fabrication and Maintenance, Instrumentation, Helicopter Services, Seismic, Supply/Support Vessels; Customs Brokerage, Offshore Fisheries Observer, and Drilling and Completions Activities.
In November 2007, EnCana selected Single Buoy Moorings (SBM) to provide and operate the production field centre and to June 2009 SBM has awarded contracts such as the hull fabrication, accommodations block fabrication, the flare tower, fabrication, topsides module fabrication, communications packages, medical services, telecommunications packages and geotechnical/geophysical services.
For further information regarding Deep Panuke opportunities, see www.bids.ca, www.encana.com/deeppanuke/business, or the daily OTANS Bulletins available at www.otans.com.
Throughout 2009, SBM and other Deep Panuke major contractors will issue additional opportunities as they move from design to construction to ready for operations.
For information on major Deep Panuke contractors, see www.encana.com/deeppanuke/business and click on the icon for Major Contractor Contacts.
Also in 2009, the drilling program will commence and the installation of the new export pipeline from the production field centre offshore to landfall will take place.
All this activity eventually takes us to 2010, when Deep Panuke's first gas is expected.
Deep Panuke Milestones
March 2009 - EnCana choose Atlantic Towing Ltd to construct a new supply vessel along with a 10 year charter contract.
January 2009 - Work begins on the flare tower fabrication at Aecon Fabco's Pictou facility.
July 2008 - First shipment of pipe for the Deep Panuke export pipeline arrives in Sheet Harbour, NS where concrete weight coating will be applied prior to installation offshore.
May 2008 - EnCana selected Accent Engineering Consultants of Dartmouth, NS for the design of the subsea protection structures. These structures will cover the Deep Panuke wellheads on the sea floor to protect them from potential damage.
February 2008 - EnCana award the engineering, procurement, installation and commissioning (EPIC) contract for the infield flowlines and umbilicals on the Deep Panuke project to Acergy Canada Ltd. Offshore installation is scheduled to commence during the second quarter of 2010.
November 2007 - EnCana selected Singly Buoy Moorings Inc. for the provision and operation of the Deep Panuke production field centre.
October 2007 - CNSOPB approved, with conditions, EnCana's Deep Panuke offshore natural gas project.
November 2006 - EnCana completes the filing of regulatory applications for the development of the Deep Panuke natural gas field to the CNSOPB, the NEB and the Canadian Environmental Assessment Agency (CEAA).
August 2006 - EnCana files a project description initiating the environmental assessment phase of the regulatory approval process.
June 2006 - The Offshore Strategic Energy Agreement (OSEA) was signed
Deep Panuke Education & Training and Research & Development Fund
As part of the development and operation of the Deep Panuke Project, EnCana is committed to funding the advancement of education, training, research and development in relation to offshore petroleum resource activities in Nova Scotia.
The company has chosen Petroleum Research Atlantic Canada (PRAC) to manage this initiative.
EnCana/PRAC are engaging in ongoing stakeholder consultations and by third quarter 2009 plan to solicit detailed research and development and education and training proposals based on set themes.