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OK to drill Nova Scotia deepwater Shell gets approval after plan revised; capping stack required in 12-13 days, would come from Norway, backup stack from Brazil GARY PARK For Petroleum News
A Canadian regulator has authorized exploratory drilling offshore Nova Scotia after accepting a revised plan by operator Shell Canada to cap any subsea blowouts.
But how far Shell will proceed with its C$970 million program depends partly on whether environmentalists and the fishing industry seek a court injunction.
The Canada-Nova Scotia Offshore Petroleum Board accepted Shell’s commitment to have a capping system on site in 12 or 13 days compared with its original plan of 21 days, but neither came close to the United States requirement of 24 hours for waters off Alaska.
Shell is also required to deploy a second capping stack as a contingency plan.
The company, in an environmental assessment for the project, said the capping equipment would be brought from Stavanger, Norway, with the backup stack coming from Brazil.
The offshore board said that before Shell can move to its planned second well it must receive a separate approval, which the regulator anticipates could be issued within a few days.
Stuart Pinks, chief executive officer of the CNSOPB, said the board decided that the previously proposed 21-day window for delivering equipment to the site was too long.
He also said a “number of the principal safety concerns were taken care of through the authorization process.”
“With the stringent requirements now in place for blowout preventers, independent well examiners, real time monitoring and CNSOPB’s deepwater drilling oversight plan ... we are confident that all reasonable precautions to protect safety and the environment have been taken,” he said.
Pinks said Shell must report its activities daily, while regular audits and inspections will be conducted by CNSOPB staff.
The Canadian Environmental Assessment Agency said a blowout in the wells that are planned is unlikely.
Alaska situation different It also said the Alaska requirement to have a vessel and capping system on call is based on a harsh, icy environment in the area and the long distances a ship carrying blowout equipment would have to travel to get there.
Shell acquired six exploration licenses in the Shelburne basin, 150 miles off the southwest coast of Nova Scotia and in water depths of 5,000 feet to 11,500 feet, in a 2012-13 bidding round.
Nova Scotia Premier Stephen McNeil said offshore development is one of his province’s “most exciting opportunities for growth and I am thrilled.”
“Shell is committed to further exploring our offshore potential by drilling its first deepwater well,” he said.
Christine Pagan, Shell’s Atlantic Canada venture manager, said it has been 10 years since the company drilled exploratory wells off Nova Scotia, noting that the company has “more than 30 years of experience operating safely in the deepwater around the world.”
Shell said it will start drilling as soon as its drillship Stena Icemax, which arrived at the site on Oct. 19, is ready.
It said the ship will remain offshore for almost a year, during which time it hopes to complete a second well.
To date, only 23 wells have been drilled in the region, 19 of which were natural gas, but Shell is targeting oil.
A spokesman for the Ecology Action Center said there is still concern about the risks of drilling, despite the revised blowout plan, adding there is no guarantee that a capping stack can be delivered any sooner than originally planned.
The Coldwater Lobster Association and Clean Ocean Action Committee also voiced concern that the equipment must be shipped over such long distances.
But there has been no indication from the organizations that they intend to mount any legal challenges.
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