Technip Canada will be doing some heavy lifting for Husky Energy both this year and in 2014.
The offshore service company has been tasked with two key contracts for the South White Rose extension project, assuming regulatory approval.
The work for Technip will involve installation of subsea infrastructures, to allow for oil production from an area near the main White Rose development. That development is found in the Jeanne d’Arc Basin about 350 kilometres southeast of St. John’s.
The first of the two contracts awarded to Technip for South White Rose is scheduled to be completed this year. It includes the supply and installation of gas injection flowlines and related subsea infrastructure.
Next year, Technip will move into the second contract, with infrastructure for water injection and the production of oil.
The service company’s work will be engineered and managed out of its St. John’s office.
In a statement issued on the contract award, Technip Canada representatives stated the two contracts have “a combined substantial value” — a label the company uses for contracts valued from $131-$328 million (€100-€250 million).
“These two awards reinforce Technip’s continuous involvement in Atlantic Canada’s offshore oil and gas projects,” stated Knut Boe, senior vice president of Technip in the North Sea and Canada.
“They also mark a new step in the relationship between Technip and Husky Oil operations, for whom we successfully completed the subsea production system contract for the White Rose field development in 2005.”
In 2012, the oil company was successful in excavating the area for the new drill centre for the White Rose extension.
In total, Husky Energy is expecting a $1.2 billion capital cost to get the South White Rose up and running.
“We started drilling in that drill centre already this year,” said Husky spokeswoman Colleen McConnell.
“It’ll be a busy summer in terms of vessels and some of the vessels are still being finalized,” she said.
Technip is expected to make use of its Wellservicer vessel — a 111-metre long, multi-purpose vessel with heavy lift cranes and remote operated vehicle capabilities.
According to McConnell, the new ship Deep Energy, at about 195 metres long, is also expected to be seen locally in the next two years.
Documents filed with the Canada-Newfoundland and Labrador Offshore Petroleum Board state the South White Rose Extension is estimated to hold 33 million barrels of recoverable oil.
Husky followed the initial development at White Rose, in 2005, with the North Amethyst project in 2010.
It is currently also considering construction of a wellhead platform in Argentia for the development of another White Rose satellite, West White Rose.
Meanwhile, a contract for work at the main White Rose field, worth about $155 million over five years, was awarded to Aker Solutions.
The engineering contract is expected to require about 90 people to fulfil and involves site studies and maintenance considerations.