Monday, June 18, 2012

PLAY ON THE EDGE

If your neighbor works  in the offshore oil industry, you will have to forgive them for not cutting the grass this week. Play on the Edge, The Newfoundland Ocean Industries Association annual conference runs all week.

Industry watchers are looking forward to a positive announcement which might indicate forward momentum. NOIA is the largest offshore and oil gas association in the country. Members will be reflecting on upcoming opportunities in the  oil & gas industry off of  Newfoundland & Labrador.

As well, opportunities for exploration and development in the Arctic are top of mind. Delegates will hear more about opportunities to make Newfoundland ports the staging site for these future opportunities.

Premier Kathy Dunderdale, a former Natural Resources Minister will speak to delegates  tomorrow morning. Current Natural Resources Minister Jerome Kennedy delivers an address on Wednesday. The government has had to fight Ottawa and some of the the oil companies to  maximize local benefits. In a progressive new approach, the previous premier  demanded and acquired equity stake in the latest projects.

Currently, two of the industries floating oil producing platforms are off-line. Husky's White Rose FPSO is in Belfast for maintenance and repair. Suncor's Terra Nova FPSO is headed to Marystown. Both are expected to be back on line by late summer/early fall. The provincial government is coping with a loss of royalties.

On the positive side, the much delayed Hebron development recently was granted  approval from the Canada-Newfoundland and Labrador Offshore Petroleum Board.  The $ 8 Billion facility is expected to generate up to 150,000 barrels a day. 

There have also been expansions at  Hibernia South and White Rose. The Hibernia South Extension Unit produced first oil on June 25, 2011, and the West White Rose produced first oil on September 25, 2011. Both  projects require additional development work prior to full production getting underway. 

Husky Energy has issued an  EOI investigating the feasibility of constructing a wellhead concrete gravity structure  for the White Rose field. Exploration in the Orphan Basin and the Flemish pass continues.

As of December 31, 2011 there has been a total of 371 wells spud offshore Newfoundland
and Labrador

Today's golf Tournament and the Lobsterfest are sold out!

Over 400 delegates are visiting the City of Legends for the big event

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