Husky Energy gave the green light for the West White Rose Extension project Monday morning.
The company will build a wellhead gravity base structure at Argentia starting later this year. Several other modules will also be built in the province, but other topsides will be built in Texas.
First oil is expected in 2022 with direct employment, business and other industrial benefits provided to the province totalling more than $3 billion in provincial royalties, equity, and taxes. Among the benefits announced Monday:
- More than 10 million person-hours of employment during the engineering and construction phases; 9.7 million in direct employment;
- In comparison to 2013 projections, there will be approximately 5,000 person years of employment through construction. This represents a 72 per cent increase since 2013;
- 250 permanent platform jobs once operational;
- Construction of the concrete gravity structure in Argentia;
- Engineering and fabrication of the accommodation module in the province;
- Fabrication of the flare boom, helideck, and life boat stations in the province;
- Contribution of $60 million to an Innovation and Business Development Fund to be administered by the Provincial Government for strategic investments to grow industry capacity; and
- Collaboration between Husky Energy and the Provincial Government on future supplier development.
Wellhead platform construction will begin in late 2017. At peak production, the project will produce approximately 75,000 barrels of oil per day in 2025.
Husky Energy and its partners, Suncor Energy and Nalcor Energy, will use a fixed wellhead platform tied back to the SeaRose floating production, storage and offloading vessel. The platform, which has received regulatory approval, will enable Husky and its partners to maximize resource recovery in the region.
Husky also announced it has made another oil discovery at Northwest White Rose. The company is still evaluating the find.
Discovered in 1984, the main White Rose field is located approximately 350 kilometres east of St. John’s, on the eastern edge of the Jeanne d’Arc Basin. Commercial oil production from the While Rose field began on November 12, 2005.
The agreement between the Government of Newfoundland and Labrador and Husky Energy can be found at www.nr.gov.nl.ca/nr/energy/petroleum/offshore/projects/whiterose_ext.html.