CANADA ADVISOR STAVANGER /03 /2017

Transcription

1 CANADA ADVISOR STAVANGER /03 /2017

2 Canadian Arctic Map

3 Regulatory Status Atlantic Provinces of NL and NS have joint Federal Provincial management.cnlopb and CNSOPB Oil and gas activities in the frontier and in offshore areas outside of the joint management areas, are governed by the Canada Petroleum Resources Act (CPRA) and the Canada Oil and Gas Operations Act (COGOA). In the north (Nunavut and Arctic Offshore areas), oil and gas activities are regulated by the Minister of Indigenous and Northern Affairs Canada and the National Energy Board. In the south (the Pacific, James Bay, all of Hudson Bay, Hudson Strait, Ungava Bay and most of the Gulf of St. Lawrence), oil and gas activities are regulated by the Minister of Natural Resources and the National Energy Board Regulatory review is in progress

4 Canadian Arctic O&G Status Significant drilling in 70 s and 80s and some licencing interest earlier in this decade. No current or planned offshore O&G projects. Shell and other operators relinquished acreage in recent years Joint US &Canada announcement in Dec 2016 placed 5 year moratorium on O&G leasing in the Canadian Arctic. Moratorium does not affect existing leases A review will take place during the 5 year period, considering existing licence holdings, northern government and other stakeholder input. Currently two EAs in Beaufort and Davis Straight area and info will feed into 5 year review Industry focus is on managing risk related to current leases and strategizing for future opportunity.

5 East Canada Sedimentary basins

6 NL Offshore Area

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8 East Coast Offshore Market Production That area has three mature producing projects of NL Hibernia (GBS) ExxonMobil Terra Nova (FPSO) Suncor White Rose (FPSO) Husky There are two gas producing projects offshore NS, Sable Offshore Energy Project (ExxonMobil) and Deep Panuke.(Encana) (Platforms) Hebron will be the fourth producing field offshore NL with First Oil scheduled for 2017 The above hold potential opportunity for companies with Brownfield solutions and technologies and decommissioning services. Multiple NEP companies continue to benefit from Canadian market.

9 Production locations qwer67

10 Potential Projects Opportunities Husky White Rose West Extension (CGS or SS Tieback) Investment decision deferred from Status announcement expected in 2017.(Estimated $C 3B Capex) 115 million barrels of oil reserves Statoil Bay du Nord (Potential FP development) 2013 discovery 300 to 600 million bbl reserves. Flanked by other discoveries of Mizzen, Harpoon, Bay de Verde and Baccalieu. Further drilling programs commencing in 2017 and Development to First Oil sometime in 2020ies? Sable Decommissioning 7 platforms, 22 wells, 340 KLM pipeline. Panning including long lead item procurement underway. No set date for end of production. Noble recently awarded a 22 well P&A program for Canada by EOM for jack up Regina Allen with a planned commencement late 2017 or in 2018.

11 East Coast Market Exploration Stimulus There is a dedicated focus by the NL provincial energy company Nalcor and by both NL and NS governments to increase exploration attraction Recent land tenure system improvements and significant increase in Seismic and mapping activity and marketing of the NL area to international market is expected to generate increased activity. The 2015 and 2016 Beicip-Franlab assessment of in place oil and gas resource potential is 12 billion barrels of oil and 113 trillion cubic feet of gas in Flemish pass and 25.5 billion barrels of oil and 20.6 trillion cubic feet of gas in 9 parcels in West Orphan basin Subsequently there were very active land sales in 2015 and 2016 with very high bids and new entrants to the area.

12 Sub Arctic/ Cold Climate Area Factors for Consideration Flemish Pass and Orphan Basin are Pioneering area All previous developments in shallow water-- Deep water is next New market entrants in recent years, Nexen Shell/BG,Hess, total, Anadarko, ConocoPhillips Nova Scotia Shell completed 2 well program but no excitement reflected in recent land sales. BP has commitment and plans to Commence drilling in 2018 NL - Statoil commencing a 2 well program in 2017 and larger program planned for 2018 Statoil submitted application for EA covering 10 exploration wells. ExxonMobil has filed provisional plans to drill up to 35 exploration wells off Newfoundland, Canada, between 2018 and 2030( CEA application) Suncor contracted Transocean Barents for infield drilling and life of field extension work on Terra Nova

13 Players CURRENT OPERATORS ExxonMobil Husky Suncor Encana NON OPERATOR SIGNIFICANT ACREAGE HOLDERS Statoil,Nexen, Chevron, BP, Hess, Noble, Navitas, DKL Investments,ConocoPhillips, Anadarko, Total,Shell. Corridor resources( Western NL Old Harry)

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15 Doing Business In Canada Canada has favourable taxation and political stability Relatively young industry with small population and technology base. Norwep partners already established and can mentor Area has local & international competition Do homework on regulations regulatory processes and including LC rules and visas etc. Understand the distance, accessibility & the environment. Gain awareness of culture, history and host country expectations. Be willing to form partnerships and engage locally.