Province Applauds Sable Construction Decision
PETROLEUM DIRECTORATE--Province Applauds Sable Construction Decision
Petroleum Directorate Minister Gordon Balser says the awarding of the kickoff contract for the Sable Tier 2 project should lead to more work being done in Nova Scotia.
The award to Kvaerner-SNC Lavelin Offshore means for the first time the critical engineering and procurement construction management will be done in Canada. Managing the project will create 45 to 50 jobs in Halifax.
"Local management should lead to more local contracts and subcontracts," said Mr. Balser. "Our recent report on how to increase Nova Scotia's share of offshore construction pointed to the need for local decision-making. I am pleased that Sable Offshore Energy Inc.(SOEI) has awarded this key contract to a firm that has committed to having all staff on the project located here."
The contract to Kvaerner-SNC Lavelin Offshore Inc. covers the work to bring the Alma field into production as part of the Sable Offshore Energy Project (SOEP). If Kvaerner-SNC Lavelin Offshore is successful in this part of the project, it would be expected they would continue on with the work to eventually bring the other two fields into production: South Venture and Glenelg.
The Sable project's first phase, Tier 1, is currently producing more than 500 million cubic feet of gas a day from three fields: Thebaud, Venture and North Triumph. The second phase, Tier 2, was designed to bring additional fields into production to replace the natural gas being depleted in the first phase, Tier 1.
The engineering and construction procurement management part of Tier 1 was done in Houston and the United Kingdom.
The total cost of Tier 1 was more than $2 billion for three offshore platforms, an offshore processing plant and accommodation platform, a pipeline to shore, as well as onshore liquids lines, a gas processing plant and a liquids fractionation plant.
Tier 2 is mainly offshore, with additional platforms and subsea pipeline systems. Its cost is forecast to be in excess of $1 billion.