Download as PDF

Atlantic Canada’s offshore oil and gas industry is one of the fastest growing sectors in the country. Propelled by such mega-projects as Hibernia, Sable and White Rose, the industry has pumped billions of dollars into federal and provincial economies and provided jobs for thousands of workers. The region has four major fields currently producing, a fifth (Deep Panuke) scheduled to come online in 2010, and Hebron about eight years later. Ongoing exploratory drilling also holds the promise of future discoveries, such as the additional 60 million barrels of oil Husky Energy found last year in a White Rose extension area. Here’s a glimpse of what’s going on in one of Canada’s most lucrative industries.

HIBERNIA 

• Hibernia was discovered in 1979 and produced first oil on November 17, 1997. It is Newfoundland and Labrador’s oldest and largest producing offshore oilfield.
• Located in the Jeanne d’Arc Basin on the Grand Banks, Hibernia is about 315 km east-southeast of St. John’s.
• It is owned jointly by ExxonMobil Canada (33.125 per cent), Chevron Canada Resources (26.875 per cent), Suncor (Petro-Canada) (20 per cent), Canada Hibernia Holding Corporation (8.5 per cent), Murphy Oil (6.5 per cent) and StatoilHydro Canada Ltd. (five per cent).
• Hibernia produces conventional light crude oil.
• It holds an estimated 1.244 billion barrels of oil.
• Workers have recovered 666 million barrels as of December 31, 2009.
• Hibernia produced an average of 125,622 barrels of oil per day in 2009.
• Industry and government officials reached a tentative agreement in June 2009 to develop the Hibernia Southern Extension. They are now working toward a formal agreement to develop the Southern Extension.
• Hibernia originally had an estimated lifespan of 20 years. The Southern Extension is expected to extend production until about 2033.
• In August 2009, the province approved development of the AA blocks from the existing Hibernia platform. The blocks are part of the main Hibernia field and are estimated to contain more than 48 million barrels of oil.
• Drilling on the AA blocks is currently underway and production is expected to begin during the first quarter of 2010.

TERRA NOVA 

• The Terra Nova oilfield was discovered in 1984 and produced first oil on January 20, 2002.
• It is located on the Grand Banks in the Jeanne d’Arc Basin, about 350 km east-southeast of St. John’s.
• Terra Nova is owned jointly by Suncor (33.99 per cent), ExxonMobil (22 per cent), StatoilHydro (15 per cent), Husky (12.51 per cent), Murphy Oil (12 per cent), Mosbacher Operating (3.5 per cent) and Chevron (one per cent).
• It produces conventional light crude oil.
• Industry officials estimate that 354 million barrels of recoverable oil exist in the Terra Nova field. However, the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) is conducting a reassessment of the Terra Nova reserves.
• The field has produced 286 million barrels of oil as of December 31, 2009.
• It has an estimated lifespan of 20 years.
• Terra Nova produced an average of 79,534 barrels of oil per day in 2009.
• Terra Nova’s production will remain steady during 2010 and Suncor will continue development drilling within the field.

WHITE ROSE

 The White Rose oilfield was discovered in 1984 and produced first oil on November 12, 2005.

• It is situated about 350 km east of St. John’s in the Jeanne d’Arc Basin.
• The project is owned by Husky Energy (72.5 per cent) and Suncor (27.5 per cent).
• It produces conventional light crude oil.
• White Rose is believed to hold approximately 305 million barrels of recoverable oil.
• It has produced 137 million barrels of oil as of December 31, 2009.
• White Rose has an estimated lifespan of 20 years; the discovery of additional reserves may extend this.
• It produced an average of 62,457 barrels of oil per day in 2009.
• Exploratory drilling in 2003 and 2006 revealed that White Rose has three satellite pools: North Amethyst, West White Rose and the South White Rose Extension.
• North Amethyst will be the first developed; it is expected to start producing oil during this year’s first quarter.
• North Amethyst holds an estimated 130 million barrels of oil, including the 60 million barrels of oil Husky Energy discovered in late 2009.