GENERAL INTEREST / Sable Energy Project moves forward - Work Begins
GOLDBORO, N.S., Jan. 8 /CNW/ - With all the required Federal and
Provincial government regulatory approvals in place, the Sable Offshore Energy
Project (SOEP) proponents have confirmed the major contracts which will start
the initial phase of the construction and drilling in the $3 billion pioneer
development of Canada's first offshore natural gas development.
At a symbolic ceremony here today SOEP Management Committee chairman Ken
Miller, Guysborough-Port Hawkesbury MLA Ray White and Guysborough Warden Lloyd
Hines turned the first sod in developing the access road right-of-way to the
site of the proposed onshore natural gas processing facility.
The groundbreaking for the key onshore facility, 300 kilometers northeast
of Halifax, signals the start of two years of onshore and offshore
construction activity. Last week contractual commitments were made for about
$1 billion of the $2 billion first phase of construction and drilling.
Miller said the Joint Review Panel recommendations and subsequent
regulatory approvals by the Federal and Provincial governments gave the
proponents the confidence necessary to continue to move forward.
''While the owners still have some work to do to formally finalize
project sanction, all our major agreements are in place, enabling us to take
the critical step of awarding the major contracts,'' Miller said. ''This keeps
us on tract to meet the market need for natural gas in 1999.''
Miller acknowledged, however, that the project is on a tight schedule.
''Last summer, we acted to ensure that purchase orders, alliance
agreements and rig contracts could be quickly actioned by the end of 1997 so
that we have all material, equipment services and necessary labor support in
place to have gas production in 1999.
''We have been encouraged by the support we have received in Nova Scotia,
in Ottawa and across Canada, by governments, suppliers, contractors, our
alliance partners and the communities which will be mostly affected. Together,
we have jointly taken a concept, and long-held goal of Nova Scotia's, to bring
offshore natural gas to market.
''I am certain that this project will bring great benefit to Guysborough
and surrounding area. I know the natural gas industry will be a solid
contributor to this province's economy and I am confident the SOEP team and
owners will deliver on the commitments we have made,'' Miller added.
The interim development and production ownership of SOEP is:
Mobil Oil Canada Properties Limited 50.8 per cent
Shell Canada Limited 31.3 per cent
Imperial Oil Resources Limited 9.0 per cent
Nova Scotia Resources Limited 8.4 per cent
Mosbacher Operating Limited (to be confirmed) 0.5 per cent
SABLE OFFSHORE ENERGY PROJECT
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BRIEFLY...........
1. The industry benchmark for a project similar to SOEP is a 29
month schedule measured from the start of detailed design to
project completion. SOEP has compressed this schedule into 23
months.
2. Prior to December 31, 1997 the SOEP proponents had commited
more than $260 million to the project.
3. A further $800 million in contractual commitments were made
December 31, 1997.
4. More than 70 purchase orders for equipment and materials were
confirmed December 31.
5. Alliance contracts were confirmed December 31, 1997 with the
key contractors covering engineering and project management,
transportation, installation and heavy lift services, subsea
pipelay services, fabrication of offshore platforms and jackets,
onshore facilities construction management, automation control
systems.
6. Tier 1 construction of SOEP will be completed by December,
1999. This $2 billion phase includes facilities and gathering
lines at Thebaud, North Triumph and Venture fields and all
onshore facilities.
7. Tier 2 development cost is estimated at more than $1 billion
and includes the facilities and gathering lines for the Alma,
Glenelg and South Venture fields and will be progressively
completed by 2006.
8. The central offshore Thebaud platform provides the critical
path for the construction schedule. The contractor began cutting
steel and started welding on January 5.
9. The Thebaud platform is expected to be installed on location
during the good weather window in the summer of 1999.
10. The Rowan Gorilla II drilling rig services have been
confirmed and the jackup rig is due on site April 1998.
11. SOEP confirmed the commitment December 31 of about $310
million for the services of the Sante Fe Galaxy II jackup
drilling rig due on location September 1998.
12. Twelve production wells will be drilled during Tier 1
drilling, five at Thebaud, five at Venture and two at North
Triumph fields.
13. Pipe and equipment costing about $75 million have been
confirmed to support the drilling operations.
14. Fabrication of the Thebaud and Venture drilling jackets is
proceeding well at the MMIndustra/Brown & Root JV Dartmouth
yard. The jackets are scheduled to be lifted by the heavy lift
transportation vessel S7000 and placed on site in March ready
for drilling activity in April.
15. Protecting the environment, the health and safety of
employees and the communities in which we work is a priority and
in 1997 the SOEP team, working in many parts of the world,
completed 860,000 persons hours of work without a lost time
accident.
16. SOEP's Halifax offices will expand to about 43,000 square
feet and will provide accommodation for drilling, alliance
partners and support activities.
17. More than 400 people are working directly on the project at
present, including almost 100 in the Halifax offices.
18. The Halifax based staffing will peak at about 180 later in
1998.
19. SOEP will be built concurrent with the $1 billion Maritimes
and Northeast Pipeline which will transport quality sales gas
into Nova Scotia, New Brunswick and New England markets. |
