Husky to suspend SeaRose operations offshore eastern Canada

The Canada-Newfoundland and Labrador Offshore Petroleum Board has ordered Husky Energy to suspend operations of the SeaRose FPSO and associated production facilities offshore Newfoundland and Labrador.

Offshore staff

CALGARY, Canada– The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has ordered Husky Energy to suspend operations of its SeaRose FPSO and associated production facilities offshore Newfoundland and Labrador.

This decision relates to an incident on March 29, 2017, when aniceberg entered the 0.25 nautical mile Ice Exclusion Area of the SeaRose FPSO, which operates at the White Rose field about 350 km east of St. John’s. There were 84 personnel and about 340,000 bbl of crude oil onboard at that time.

In accordance with Husky’s Ice Management Plan (IMP) filed with the C-NLOPB as a requirement of Husky’s operations authorization, theSeaRose FPSO should have disconnected and sailed away from the threatening iceberg. According to the C-NLOPB, that action was not taken, and personnel were at one point instructed to muster and ‘brace for impact.’

Ultimately, the iceberg did not make contact with the FPSO or subsea infrastructure. There were no injuries, no environmental damage, and no damage to the facility.

Along with the public issuance of a C-NLOPB Incident Bulletin on March 30, 2017, the C-NLOPB’s chief safety officer (CSO) issued a notice of non-compliance to Husky for failing to comply with its IMP, along with an order to comply.

Husky submitted its final investigation report into the incident on April 27, 2017, and a formal enquiry was launched by the C-NLOPB on May 9, 2017, conducted by the board’s safety and environmental compliance officers.

The C-NLOPB said that this decision to suspend operations was taken now because of the preliminary report findings, which included: Husky did not follow its IMP; onshore senior management did not ensure the IMP was followed; and the offshore installation manager failed to disconnect in accordance with the IMP.

The board has determined there are serious issues respecting Husky’s ice management, management systems, and organizational decision-making. Based on the enquiry’s preliminary findings, the C-NLOPB said that it lacks full confidence that appropriate action will be taken by the operator during an emergency.

TheSeaRose FPSO’s petroleum-related operations will remain suspended until the board is confident that corrective and appropriate actions to address the findings related to its ice management, management system, and organizational structure have been addressed to the satisfaction of the CSO and chief conservation officer, in a manner that ensures the safety of personnel and the protection of the environment.

Husky CEO Rob Peabody said: “We could have and should have responded differently according to the pre-existing plan, and we will learn from this incident. We will work with the C-NLOPB and take the actions necessary to satisfy the regulator.”

The company said that it will undertake all steps necessary to comply with the directives of the C-NLOPB. It added that measures have already been put in place to further improve ice management operations.

Current production from theSeaRose FPSO is about 27,000 b/d of oil.

01/17/2018

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