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Newfoundland counts on recovery
Newfoundland, Canada’s only offshore oil producer, is targeting a rebound in output this year after a year of maintenance-related setbacks.
The Atlantic province has forecast a combined 230,000 barrels per day from its three offshore oil fields this calendar year, up 16.9 percent from 2012.
Hibernia is targeted at 136,000 bpd, up 5,400 bpd; White Rose is expected to yield 52,000 bpd, up 9,300 bpd; and Terra Nova is forecast to average 42,000 bpd, up 18,600 bpd.
Output at Terra Nova and White Rose were the hardest hit by scheduled maintenance last year, dragging combined production below 2011 figures by 25.8 percent.
Increase in spend expected The government said it is budgeting for oil and natural gas capital spending this year of C$4.7 billion, an increase of 80 percent from 2012, due mostly to the ramp up of construction for the ExxonMobil-operated Hebron project, which is due to start production of 150,000 bpd in 2017.
Newfoundland is basing its outlook on average oil prices of US$105 per barrel in the 2013-14 budget year, after falling well short of its anticipated US$124 last year.
Offshore royalties are expected to generate C$2.07 billion in revenues for Newfoundland in the new fiscal year, accounting for 32 percent of the province’s total revenues and up C$60 million from last year.
Budget documents showed several oil and gas companies will pursue exploration and development in 2013, including Statoil with plans for two wells in the Flemish Pass and one in Jeanne d’Arc basin, while Chevron has a well planned for the deepwater Orphan basin.
Smaller companies are planning to drill five wells in the onshore shale prospects of western Newfoundland.
—Gary Park
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