Deep Panuke Project Paying Dividends For Local Business, Industry

A Cape Breton company and one of the world's largest drilling companies have come together to produce cutting-edge rig structures that can be transported to remote locations by the world's largest helicopter.

Laurentian Energy today, July 9, unveiled the first of six structures for Nabors Canada's new Heli-rig program. The 3x3x12-metre (10x10x40-foot) structures, worth $4.2 million overall, will be used to store drilling fluids and equipment on rigs under construction in Calgary.

The contract is a result of the Deep Panuke Offshore Strategic Energy Agreement signed between EnCana and the government of Nova Scotia.

"This deal puts money in the pockets of our talented workforce and, more importantly, it gives our workers the skills and know-how to compete in a new and growing segment of the oil and gas industry," said Premier Rodney MacDonald. "I want to congratulate the parties -- EnCana, Laurentian, Nabors and the Energy Department -- for making it happen."

EnCana staff brought together Laurentian and Nabors. In the strategic energy agreement, EnCana committed financial and human resources to develop onshore drilling-rig manufacturing capability in Nova Scotia.

"We're pleased to help celebrate the success of this contract," said Dave Kopperson, vice-president Atlantic Canada for EnCana Corporation. "Congratulations to Laurentian and to Nabors on a job well done."

The heli-rigs must be lighter to meet air-transport weight restrictions. The rigs are transported by a Russian MI26, the world's largest helicopter.

Laurentian CEO James Wooder said he is grateful for the opportunity to develop new expertise within the company labour force.

"Our people spent a lot of time in Calgary working hand-in- hand with others who are veterans in this industry," said Mr. Wooder. "This exposure results in the kind of technology transfer hoped for by the province and EnCana when they signed their agreement."

Nabors Canada is a subsidiary of Houston-based Nabors Industries, one of the largest land- and platform-drilling contractors in the world. Nabors Canada president Duane Mather said working with EnCana and Maritime companies has been a rewarding experience.

"Laurentian, their subcontractors, and all employees within the group have demonstrated an ability to integrate our technology into their capabilities to produce first-class components for us to add to rigs being constructed in Calgary," said Mr. Mather. "This capability has allowed us to maintain tight delivery commitments without compromising quality."

Energy Minister Bill Dooks was also on-hand for the unveiling of the structures.

"This contract has provided Laurentian with an excellent introduction into onshore oilfield equipment fabrication," said Mr. Dooks. "It demonstrates that we can deliver a quality product for one of the world's largest drilling contractors. I believe it will lead to other oil-and-gas-related work."

Laurentian Energy is located in the Sydport Marine Industrial Park near Sydney in Cape Breton Regional Municipality. The company is equipped to handle custom steel fabrication on a large scale with extensive lay-down and assembly space.