Challenges and Opportunities in the Canada Newfoundland and Labrador Offshore Oil Industry

Transcription

1 Challenges and Opportunities in the Canada Newfoundland and Labrador Offshore Oil Industry JffO K Jeff O Keefe Director Resource Management and Chief Conservation Officer

2 Cougar Helicopters Flight 491 Crash March 12, 2009 Photo: Cougar Helicopters 2

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5 Regional Setting C NLOPB offshore area covers in excess of 1.8 MM km 2 Over 20 offshore sedimentary basins Proven petroleum systems in basins 5

6 Offshore Newfoundland and Labrador Total Wells by Year and Classification 1 2 Number of wells drilledd Year Exploration Delineation Development elopment 6

7 Drillship Glomar Sirte 1966 (49 years ago) Zapata Ugland Discover Seven Seas Sedco 706 7

8 Hibernia P 15 Discovery well 1979 Glomar Atlantic AAPG Memoir 32; Arthur et al.,1982 8

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10 Ocean Ranger sinking Hickman Inquiry Photo by John Weston Atlantic Accord

11 Hibernia Discovered 1979 Development Cost: $5.8 billion First Oil in November 1997 Reserves/Resources (C-NLOPB estimates): million barrels of oil Average Daily Production 2015: - 115,000 bbls/day Cumulative Production as of Dec 2014: million barrels Photo: HMDC 11

12 Terra Nova Discovered: 1984 Development Cost: $2.8 billion First Oil: January 20, 2002 Recoverable Reserves (C-NLOPB estimates): - Oil: 506 million bbls Average Daily Production 2015: - 72,000 bbls/day Cumulative Production as of Dec 2014: million barrels Source: Suncor 12

13 White Rose Discovered in 1984 Development Costs: $2.3 billion First Oil November 12, 2005 Resources: million bbls oil Average Daily Production 2015: - 32,000 bbls/day Cumulative Production Dec 2014: MMbbls Source: Husky 13

14 North Amethyst Discovered in 2006 Development Cost of $1.8 billion (Satellite Field adjacent to White Rose) First Oil May 31, 2010 Reserves estimated million bbls oil Average Daily Production 2015: - 22,091 bbls/day Cumulative Production Dec 2014: MMbbls Source: Husky 14

15 Hebron Complex First Production ~2017 Source : ExxonMobil 15

16 Highlights ht of Hebron Platform Construction 2014 Source : ExxonMobil 16

17 million bbls million bbls Produced Remaining 17

18 Grand Banks Developments White Rose Hebron Challenges Sea ice and iceberg risk Geotechnical properties Facility Types GBS, FPSO, Subsea Special Design Features Structural Reinforced Disconnection Terra Nova Development Terra Nova FPSO Risk Mitigation Iceberg detection and towing Alert zones Excavation Drill Centres Pipeline trenching Hibernia GBS 18

19 Husky Wellhead Platform (proposed) for White Rose Extension Project Source : Husky 19

20 Mobile Offshore Drilling Installations Source : Husky /ExxonMobil Glomar Grand Banks Seadrill West Aquarius Seadrill West Hercules West Mira Due Q

21 New Scheduled Land Tenure System Key Benefits: Longer Assessment Periods Multiple Nomination Opportunities 8 Offshore Regions 3 Activity categories Low High Mature 3 Licensing Timing Cycles 4 year Low 2 year High 1 year Mature Any sector, parcel or licence depicted on this map beyond 200 nautical miles off the coast of Newfoundland and Labrador is not represented by the Board to reflect the full extent of Canada's continental shelf beyond 200 nautical miles. Canada has filed a submission regarding the limits of the Outer Continental Shelf in the Atlantic Ocean with the Commission on the Limits of the Continental Shelf, the review of which is pending. Any call for bids based on a sector or parcel identified in this map and any licences issued in those areas will be subject to approval as a Fundamental Decision under applicable legislation. The boundaries of sectors, parcels or licences in areas beyond 200 nautical miles may be revised to reflect the limits it of the Outer Continental t Shelf established by Canada. All interest t holders of production licences containing i areas beyond 200 nautical miles may be required, through h legislation, l regulation, licence terms and conditions, or otherwise, to make payments or contributions in order for Canada to satisfy obligations under Article 82 of the United Nations Convention on the Law of the Sea. 21

22 Scheduled Land Tenure Outlook % under licence/cfb/sector % under licence/cfb/sector Any sector, parcel or licence depicted on this map beyond 200 nautical miles off the coast of Newfoundland and Labrador is not represented by the Board to reflect the full extent of Canada's continental shelf beyond 200 nautical miles. Canada has filed a submission regarding the limits of the Outer Continental Shelf in the Atlantic Ocean with the Commission on the Limits of the Continental Shelf, the review of which is pending. Any call for bids based on a sector or parcel identified in this map and any licences issued in those areas will be subject to approval as a Fundamental Decision under applicable legislation. The boundaries of sectors, parcels or licences in areas beyond 200 nautical miles may be revised to reflect the limits of the Outer Continental Shelf established by Canada. All interest holders of production licences containing areas beyond 200 nautical miles may be required, through legislation, regulation, licence terms and conditions, or otherwise, to make payments or contributions in order for Canada to satisfy obligations under Article 82 of the United Nations Convention on the Law of the Sea. Any sector, parcel or licence depicted on this map beyond 200 nautical miles off the coast of Newfoundland and Labrador is not represented by the Board to reflect the full extent of Canada's continental shelf beyond 200 nautical miles. Canada has filed a submission regarding the limits of the Outer Continental Shelf in the Atlantic Ocean with the Commission on the Limits of the Continental Shelf, the review of which is pending. Any call for bids based on a sector or parcel identified in this map and any licences issued in those areas will be subject to approval as a Fundamental Decision under applicable legislation. The boundaries of sectors, parcels or licences in areas beyond 200 nautical miles may be revised to reflect the limits of the Outer Continental Shelf established by Canada. All interest holders of production licences containing areas beyond 200 nautical miles may be required, through legislation, regulation, licence terms and conditions, or otherwise, to make payments or contributions in order for Canada to satisfy obligations under Article 82 of the United Nations Convention on the Law of the Sea. 22

23 Exploration Wells in Flemish Pass Mizzen O 16 Statoil discovery Bay du Nord C 78 One of the world s largest oil discoveries in 2013 according to Statoil ~469 km east of St. John s Bay de Nord Harpoon C 78 & C 78Z O 85 Bay de Verde F 67 & F 67Z Flemish Pass discoveries to date: 1. Mizzen Harpoon Bay du Nord 2013 Current Exploration Drilling: 1. Bay de Verde 2014/15 Any sector, parcel or licence depicted on this map beyond 200 nautical miles off the coast of Newfoundland and Labrador is not represented by the Board to reflect the full extent of Canada's continental shelf beyond 200 nautical miles. Canada has filed a submission regarding the limits of the Outer Continental Shelf in the Atlantic Ocean with the Commission on the Limits of the Continental Shelf, the review of which is pending. Any call for bids based on a sector or parcel identified in this map and any licences issued in those areas will be subject to approval as a Fundamental Decision under applicable legislation. The boundaries of sectors, parcels or licences in areas beyond 200 nautical miles may be revised to reflect the limits of the Outer Continental Shelf established by Canada. All interest holders of production licences containing areas beyond 200 nautical miles may be required, through legislation, regulation, licence terms and conditions, or otherwise, to make payments or contributions in order for Canada to satisfy obligations under Article 82 of the United Nations Convention on the Law of the Sea. 23

24 24 March 8, 2015

25 Safer Drilling in Deep Water/Hazardous Environments Highlights of Improvements since 2010 A dedicated regulatory oversight team within the C NLOPB Timely submittal of daily reports, seven days a week Formal bi weekly meetings between the oversight team and the Operator Increased frequency of audits and inspections onboard the offshore installation C NLOPB observers onboard to during specific operations Photo: Greg Locke 10 25

26 East Coast Offshore R&D Capability Since the C NLOPB R& D guidelines came into effect in 2004, the producing operators have invested $327 million of eligible expenditures on Research & Development and Education & Training in the Province. 49% 51% Ships structure in Ice Advances in Ice Management and Ice Engineering Model Testing of Engineering Design 26

27 Lifeboat Operations in Ice Research continues in creating an ice free launch zone using the propeller wash from an Offshore Supply vessel Joint project research between Operator and NL Research institutions Source: Husky 27

28 28 28 Source: RDC

29 WEBSITE: cnlopb.ca 18 29