CNLOPB gives approval for Husky Energy’s extension of work at North Amethyst site
More oil is expected from Newfoundland’s offshore, with the announcement the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) has approved an add-on to Husky Energy’s North Amethyst development.
The North Amethyst oil project is in the Jeanne d’Arc Basin, about 350 kilometres from St. John’s. Husky has been given the go-ahead to go below its area of current production there and tap into what is known as the Hibernia Formation — unrelated to the Hibernia project, led by ExxonMobil Canada.
Husky’s new area for production is expected to result in another six to eight million barrels of oil from the site.
The company has estimated
8.3 million barrels recoverable, while staff at the CNLOPB have placed the estimate at 6.7 million.
“This is something we’ve been planning for a while,” said Colleen McConnell, a spokeswoman for Husky Energy.
The additional oil will be produced using existing infrastructure, she said, and the SeaRose FPSO.
The CNLOPB met Sept. 23 to consider the application from Husky requesting permission to amend its development plan for North Amethyst and include a new well tapping into the Hibernia Formation.
The board’s decision was made after a detailed review of Husky’s new plans by staff at the offshore regulator, stated a notice on the decision issued Monday afternoon by the CNLOPB. The CNLOPB has published a 48-page summary of its staff analysis of Husky’s plans.
Both the provincial and federal ministers have ratified the change in Husky’s development plans.
Two wells will be needed to produce oil from the Hibernia Formation. A water injector well was drilled in 2010, under an exemption approved by both Natural Resources ministers, stating the well could be drilled even though there had not been a final stamp of approval put to Husky’s development plan.
A second well, to produce the oil, has yet to be drilled.