Offshore

Exploration and development in Canada's offshore has been underway for nearly 40 years. Activity is concentrated in the Atlantic region, with exploration potential off the west coast of British Columbia and in the Arctic.

• Established reserves in the Atlantic offshore are estimated at 213 million cubic metres of conventional crude oil and 10 billion cubic metres of natural gas.
• Nearly $25 billion has been invested to date - in seismic surveys, drilling and new facilities.
• About 13 per cent of Canada's crude oil production is from offshore Newfoundland and Labrador.
• As of mid 2010 there was $8.8 million in Newfoundland and Labrador alone in exploration commitments to be undertaken by interest owners
• Over $70 million spending on research and development, education and training by the oil and gas industry in Nova Scotia

The first offshore discovery in Atlantic Canada was at Sable Island in 1971. The first offshore project was Cohasset-Panuke, followed by Hibernia, Sable Island, Terra Nova and White Rose. A second natural gas project in Nova Scotia - Deep Panuke - is under development and is expected to begin producing in 2011.

Projects

Sable Island

The Sable Offshore Energy Project (SOEP) encompasses one of the largest known natural gas deposits remaining to be developed in North America. The $3 billion project has six major natural gas fields located 10 to 40 km north of the edge of the Scotian Shelf. Together, these fields contain an estimated 85 billion cubic metres of recoverable gas reserves.

Production began in December of 1999 with a total project life expectancy of about 25 years. The Project design rate is 14.4 million cubic metres per day of raw gas production yielding 13 million cubic metres per day of sales gas. Approximately 3 300 cubic metres of natural gas liquids will also be produced. This production rate can be increased if market conditions and gas supplies warrant.

Hibernia

The Hibernia field, discovered in 1979, is located on the Grand Banks some 300 km east of St. John's, Newfoundland & Labrador. First oil production from the massive Hibernia platform was in November 1997. In 2010 the field averaged 20 603 cubic metres of oil per day. The C-NLOPB estimates oil reserves and resources at Hibernia to be 197.8 million cubic metres of which 114.9 million cubic metres were produced as of December 31, 2010.

Facilities include a fixed production platform with a Gravity Base Structure (GBS) and topside drilling. The GBS is the first of its kind. A 15-metre thick concrete wall protects against sea ice and icebergs. The platform is designed to withstand the impact of a six million tonne iceberg, which is only likely to occur every 10 000 years.

Terra Nova

The Terra Nova Field, discovered in 1984, is located 350 km east of St. John's, Newfoundland and Labrador and 35 km southeast of the Hibernia field. First oil production was in January 2002. In 2010, oil production averaged 12 084 cubic metres per day. The C-NLOPB estimates oil reserves and resources at Terra Nova to be 66.6 million cubic metres of which 49.5 million cubic metres were produced as of December 31, 2010. Terra Nova was the first harsh environment project in North America to use a Floating Production Storage and Offloading (FPSO) vessel.

White Rose

The White Rose Field, discovered in 1984, is located 350 km east of St. John's, Newfoundland & Labrador. Oil production commenced in November 2005. In 2010, the field averaged 8 260 cubic metres of oil per day. The C-NLOPB estimates oil reserves and resources at White Rose to be 48.5 million cubic metres of which 24.3 million cubic metres were produced as of December 31, 2010. White Rose is being developed with a Floating Production Storage and offloading (FPSO) vessel, which is tied into a subsea production system of wellheads and flowlines. The wellheads are located in excavations, known as glory holes, to guard against iceberg scour.

Deep Panuke

The Deep Panuke project was approved for development in late 2007. The estimated $800 million project, located about 250 km southeast of Nova Scotia, is expected to begin production in 2011. Current design capacity is for 8.5 million cubic metres per day of sales gas. The project design consists of a jackup Mobile Offshore Production Unit (MOPU) in a water depth of 44 metres.

North Amethyst

The North Amethyst field discovered in 2006 is the first satellite field development at the White Rose project and is also the first subsea tie-back project in Canada. The subsea wells in the North Amethyst drill center will be tied-back to the SeaRose FPSO through flexible flowlines, which is moored about 6 kilometers away from the North Amethyst field. In 2010, the field averaged 1986 cubic metres of oil per day with production expected to more than double in 2011. The C-NLOPB estimates oil reserves and resources at North Amethyst to be10.8 million cubic metres of which 94 725 cubic metres were produced as of December 31, 2010.

Other Projects

Off Canada's East Coast is the East Orphan Basin, one of the world's last unexplored frontiers. Regional seismic surveys suggest it could hold up to 1.3 billion cubic metres of oil. The Hebron field, discovered in 1981 is an undeveloped oil field located north of the Terra Nova field. The Hebron heavy oil project is expected to begin production before the end of 2017.

Offshore Development - Resource Center