Husky Energy is moving forward with the West White Rose Project offshore Newfoundland and Labrador.
The Company and its partners will use a fixed wellhead platform tied back to the SeaRose floating production, storage and offloading (FPSO) vessel. The platform, which has received regulatory approval, will enable the Company to maximize resource recovery.
First oil is expected in 2022 and the project is anticipated to achieve a gross peak production rate of approximately 75,000 barrels per day (bbls/day) in 2025, as development wells are drilled and brought online.
“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 CEO Rob Peabody. “This project is of a scale approaching the original White Rose development and is able to use the existing SeaRose FPSO to process and export production.
“We’ve made significant improvements to the project since it was first considered for sanction, including identifying numerous cost savings, achieving a 30 percent improvement in capital efficiency and increasing the expected peak production rate by 40 percent over our initial estimate,” added Peabody. “Moving forward with this project is a significant milestone for Husky, while creating jobs, royalties and other benefits for Newfoundland and Labrador.”
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.
Husky has a working interest of approximately 70 percent. Project partners are Suncor Energy and Nalcor Energy – Oil and Gas.
A purpose-built graving dock at Argentia, Newfoundland and Labrador was completed in 2015 to enable construction of the concrete gravity structure. Construction will commence in the fourth quarter of 2017.
Following construction, the concrete gravity structure will be towed to the White Rose field where the platform’s topsides will be installed before connection to the SeaRose via existing subsea infrastructure.
NEW OIL DISCOVERY AT NORTHWEST WHITE ROSE
A series of discoveries and satellite developments in the White Rose production area has improved the longevity of the original field since its discovery in 1984.
The latest has been made at Northwest White Rose. The White Rose A-78 well was drilled approximately 11 kilometres northwest of the SeaRose FPSO in the first quarter of 2017 and delineated a light oil column of more than 100 metres. The discovery continues to be assessed. Husky has a 93.2 percent ownership interest.
A potential development could leverage the SeaRose, existing subsea infrastructure and the new West White Rose wellhead platform.
ATLANTIC OPERATIONS AT A GLANCE
Husky Energy is a Canadian-based integrated energy company. It is headquartered in Calgary, Alberta, Canada and its common shares are publicly traded on the Toronto Stock Exchange under the symbol HSE. More information is available at www.huskyenergy.com
SOURCE: Husky Energy
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