Petrofac Scores Nova Scotia Deepwater Study
- Business & Finance
Petrofac has been awarded a contract to work with the Government of Nova Scotia to help it identify the best way forward to exploit its ultra-deepwater oil potential.
Under the terms of the contract, Petrofac has been tasked with delivering a development study for a prospective oil reservoir 3,000 metres beneath the seabed which is also in 2,000 metres of water. This is a multi-discipline, integrated project, being led by Petrofac’s specialist subsea engineering business, KW Subsea. Additionally, teams from within Petrofac’s Engineering & Consulting Services (ECS) business and the wider group capability will be providing support to the project, ranging from process design, naval architecture, subsea engineering, cost estimating as well as a specific drilling scope. The project is expected to complete in early 2015.
Craig Muir, Managing Director for Petrofac’s ECS business, commented: “The potential outcomes of this study are of strategic importance for the Nova Scotia Government and a great step forward for Petrofac in the ultra-deepwater market. The wider capability set of the Petrofac Group really helped us offer a value proposition. We now look forward to delivering that proposition for our customer.”
The Government of Nova Scotia estimates its offshore potential to be around 120 trillion cubic feet of natural gas and eight billion barrels of oil and it has already awarded a number of blocks to Shell and BP who have combined exploration commitments in excess of US$2 billion. Thought to be similar to oil reserves found in northwest offshore Africa, one of the key challenges for developing Nova Scotia’s reservoirs will be the water depth. Deepwater drilling is scheduled to begin in 2015 with first oil estimated sometime after 2025.