Husky hires second rig

The rig GSF Grand Banks will spend another two years drilling wells for Husky Energy at the White Rose oilfield.

The bulk of its work will be drilling about 12 development wells for North Amethyst, the 90-million-barrel expansion of White Rose.

First oil at North Amethyst is scheduled for mid-May.

"We're still on track for mid-May, subject to weather," said Paul McCloskey, vice-president of Husky's East Coast operations.

Unlike the previous two springs, this year Husky has not been plagued by pack ice encroaching on the White Rose field.

Husky's current contract for the GSF Grand Banks ends January 2011, when the new two-year agreement takes effect.

Husky is also part of the new rig-sharing deal to hire Henry Goodrich for another three years, along with Suncor Energy and Statoil Canada.

On Friday, the rig was under tow and headed to the Marystown Shipyard for its scheduled five-year refit. The rig is expected to arrive there this weekend, if the weather co-operates.

McCloskey expects that round of maintenance, inspections and certifications to take 2 1/2 months.

He said the rig would likely be handed over to Suncor sometime in the latter half of this year.

Suncor, which operates the Terra Nova oilfield, is aiming to squeeze more crude from Grand Banks field.

"One of the objectives for us is to be able to drill more wells in the Terra Nova field," said John Downton, spokesman for Suncor.

"It will enable us to develop more wells to maximize production from that reservoir."

Husky plans to drill a mix of exploration, appraisal and development wells. Its exploration plans are not yet firm.

"Our thinking, currently, is that we'd explore the opportunities within the Grand Banks area," McCloskey said.

Meanwhile, Husky is also planning to drill a pair of wells to assess the flow of crude from West White Rose, the second planned expansion of the original oilfield.

In November, the company submitted a development plan to the offshore regulator and is awaiting a decision.

"We would hope to hear something around mid-year," McCloskey said.

Those wells will help Husky refine its estimates of 120 million barrels of oil at West White Rose.

mbaird@thetelegram.com