Husky approves West White Rose, makes new oil discovery
Husky Energy and partners Suncor Energy and Nalcor Energy – Oil and Gas are moving forward with the West White Rose project offshore Newfoundland and Labrador.
The $1.6-billion development calls for a fixed wellhead platform tied back to theSeaRose FPSO. Construction is expected to begin in 4Q 2017.
First oil is scheduled for 2022, with an expected peak production rate of about 75,000 b/d in 2025.
CEO Rob Peabody said: “This project is of a scale approaching the originalWhite Rose development and is able to use the existing SeaRose FPSO to process and export production.
“We’ve made significant improvements to the project since it was first considered for sanction, including identifying numerous cost savings, achieving a 30% improvement in capital efficiency and increasing the expected peak production rate by 40% over our initial estimate.”
With the tieback to theSeaRose, the company points out incremental operating costs are expected to be less than $3/bbl over the first 10 years, further lowering overall operating costs per barrel for the entire White Rose field as the project ramps up.
Husky Energy also announced a new oil discovery at Northwest White Rose. The White Rose A-78 well was drilled about 11 km (6.8 mi) northwest of theSeaRose FPSO in 1Q 2017 and delineated a light oil column of more than 100 m (328 ft). The discovery continues to be assessed. Husky has a 93.2% ownership interest.