Terra Nova schedule and costs - revised
According to a company report, hook-up and commissioning operations on the Terra Nova Floating Production, Storage and Offloading (FPSO) vessel at the Bull Arm facility in Newfoundland have been re-scheduled for completion this summer. Upon completion, the vessel will then depart for the field to carry out offshore start-up activities with first oil expected late this year.
Petro-Canada said the estimated total pre-production capital cost estimate has not been finalized, but it expects the number could increase by up to 15% over the current estimate of C$2.5 billion. Petro-Canada is also forecasting minimal production volumes from the field during 2001.
Norman McIntyre, Executive Vice-President, said the schedule and cost adjustments arise from an internal review of the project plan during the atshore hook-up and commissioning phase. He said additional time is required for remedial work to address design engineering and workmanship problems identified in several key vessel systems after arrival in Bull Arm. They include the seawater cooling system, the heat tracing system, the heating, ventilation and air conditioning (HVAC) system and the turret. Design modifications arising from technical issues recently identified in other North Sea facilities also are being incorporated.
"While the schedule is an important benchmark for us, it is even more important that we take the time needed to ensure the FPSO is fully commissioned and ready for service," McIntyre said. "A key objective of hook- up and commissioning is to identify and resolve problems before putting the vessel into service. Our revised work plan will achieve this objective by making design and engineering changes, repairing or replacing faulty systems and applying more people to strengthen the engineering and quality assurance processes. All of this work will also improve operability of the production facility in service."
"This FPSO is the first to be built specifically for the unique environmental conditions offshore Newfoundland, and it has been a challenging project," he added. "We have successfully addressed issues in the excavation of glory holes and the installation of sub sea flow lines on the Grand Banks. We will take the steps necessary to ensure the production facility performs well over the projected 15-year production life of Terra Nova."
The Terra Nova owners are: Petro-Canada (operator) (33.99%); ExxonMobil Canada (22%); Norsk Hydro Canada Oil & Gas (15%); Husky Oil Operations (12.51%); Murphy Oil (12%); Mosbacher Operating (3.5%); and, Chevron Canada Resources (1%).
The Terra Nova Alliance is the organization responsible for delivering the FPSO. It consists of: Petro-Canada, AGRA Brown & Root, Halliburton Energy Services, FMC Offshore Canada Ltd., PCL Industrial Constructors, Coflexip Stena Offshore Newfoundland, and Doris ConPro Offshore Ltd.
The Terra Nova oil field is located on the Grand Banks, 350 kilometers east-southeast of St. John's, Newfoundland. Discovered in 1984, Terra Nova is the second largest oil field off Canada's East Coast, with estimated recoverable reserves of 370 million bbl of oil. The field is expected to produce 130,000 b/d in 2002.
Edited by Frederick Parnell