By May 29, 2017 Read More →

Husky Energy approves West White Rose project

West White Rose

Husky Energy says new technology will boost production at the West White Rose project by 40 per cent over its original design.  Husky photo.

West White Rose project off Atlantic Coast

On Monday, Husky Energy announced it will proceed with its West White Rose project off the coast of Newfoundland and Labrador, reviving the long-delayed, high cost project despite sluggish oil prices.

According to the company, the first oil is expected in 2022 and the project is expected to pump about 75,000 barrels per day (b/d) in 2025 as the company drills and brings development wells online.

The net project cost is $2.2 billion to first oil and about $3.6 billion over the project’s lifespan.

Donate now! Please support quality journalism by contributing to our Patreon campaign. Even $5 a month helps us continue delivering high quality news and analysis about Canadian and American energy stories that affect your life and your lifestyle.

“Over the years the Atlantic business has provided some of the strongest returns in the Company’s portfolio and West White Rose is the next chapter,” said Husky CEO Rob Peabody.

Husky and its partners, Suncor Energy and Nalcor Energy – Oil and Gas, will use a fixed wellhead platform tied back to the SeaRose floating production, storage and offloading vessel.  Husky says the technology will allow it to maximize resource recovery.

“This project is of a scale approaching the original White Rose development.”

Peabody added new technology will allow the West White Rose project to achieve a 30 per cent improvement in capital efficiency as well as a 40 per cent boost in production over its initial estimate.

With the tie-back to the SeaRose, incremental operating costs are expected to be under $3 per barrel over the first 10 years.

“Moving forward with this project is a significant milestone for Husky, while creating jobs, royalties and other benefits for Newfoundland and Labrador.”

The company estimates Newfoundland and Labrador will gain over $3 billion in royalties, equity and taxes and over 10 million person-hours of employment during the engineering and construction phases.  250 platform jobs are expected to be created once the operation is up and running.

Husky is a 70 per cent shareholder in the project.

With the tie-back to the SeaRose, incremental operating costs are expected to be less than $3 per barrel over the first 10 years, further driving down overall operating costs per barrel for the entire White Rose field as the project ramps up.

Along with the announcement of the West White Rose project, Husky reported a number of discoveries and satellite developments in the White Rose production area has boosted the longevity of the original field.

White Rose is located about 350 kilometres east of St. John’s on the eastern edge of the Jeanne d’Arc Basin.

Posted in: Canada

Comments are closed.