Photo Credit: Terra Nova Project
The Queen of the Netherlands in St. John’s Harbour. This vessel was used in glory hole excavation on the Terra Nova field. Excellent progress allowed the vessel to excavate an additional unscheduled glory hole this year. 

Hibernia
Hibernia is expected to produce about 35 million barrels of oil this year, up from almost 24 million in 1998. Production was expected to be higher at the beginning of the year, but a slow start on gas re-injection and power interruptions have lowered expectations. Annual production in future could easily exceed 50 million barrels at current capacity levels. Furthermore, the project’s owners are looking to increase capacity from 150,000 to as much as 200,000 barrels/day. Combined operating and capital expenditures should range between $300-350 million per year in the near term. Hibernia has produced considerable benefits for the Province’s economy. Production from the field, including spinoffs, accounted for 5.7% of GDP in 1998 and has been a driving force behind economic growth.

Terra Nova Development work to bring Terra Nova into production in late 2000 is proceeding. Drilling of the production wells at the site has been ongoing since July. At the end of September, over 1,300 people were employed on the project in the Province, almost 800 of these were working in Bull Arm on module fabrication and quay expansion. Expenditures associated with the project are expected to be about $850 million this year. Activity will continue at a rapid pace in 2000 when the floating production vessel arrives from South Korea for hook-up and commissioning. With average daily production estimated at 115,000 barrels, Terra Nova is expected to produce over 40 million barrels of oil a year when it comes on stream. Expansion of the transshipment terminal at Whiffen Head to accommodate Terra Nova oil is continuing. When completed next fall, the facility will have a total capacity of 2.5 million barrels of oil. Further expansion to the terminal will be considered as new fields are developed.   Photo Credit: Terra Nova Project Technology transfer in action: subsea templates for Terra Nova being offloaded at NEWDOCK, St. John’s

Exploration
Nine exploration/delineation wells have been drilled this year. This activity, together with considerable seismic data collection, is estimated to have resulted in expenditures of approximately $225 million. Most of the wells drilled have shown favourable results.

White Rose
White Rose is advancing as the next development candidate. Delineation drilling this year indicates that the field has two separate hydrocarbon accumulations, South White Rose (SWR) and North White Rose (NWR). The owners have estimated that SWR has potential recoverable oil of about 250 million barrels. Selection of a development concept, followed by engineering design and a development decision are expected over the next year. Oil could flow from SWR in 2003. NWR could lay the foundation for gas development with an estimated 2 trillion cubic feet of potential recoverable gas. The field also contains 150 million barrels of oil and gas liquids.

Natural Gas
In total, the Province’s gas resources are estimated at more than 50 trillion cubic feet. The Jeanne d’Arc Basin on the Grand Banks (where White Rose is located) contains discovered and undiscovered resources estimated at four and 10 trillion cubic feet respectively. Industry stakeholders are actively reviewing production options, processing requirements and transportation systems. 

Onshore Oil Development
Oil production on the Port au Port Peninsula could commence as early as next year according to Canadian Imperial Venture Corp. Through a farm-in agreement with Hunt Overseas Operating Company and PanCanadian Petroleum Limited, Canadian Imperial will become operator of a permit covering most of the Port au Port Peninsula including an oil discovery made by the farmors in 1995. Canadian Imperial’s plans include evaluation of the discovery, filing a development plan application and ultimately, production. The field is expected to yield a high quality crude. While this development is small compared with mega-projects on the Grand Banks, it will be significant for the local economy of the area and may be a catalyst for future oil plays in Western Newfoundland.

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