Deep Panuke Safety Risk Management

Transcription

1 Deep Panuke Safety Risk Management Gary Karasek, Lead Loss Control Engineer NS Energy R&D Forum Antigonish May 21, 2008

2 EnCana Corporation Future Oriented Information In the interest of providing EnCana Corporation ( EnCana or the Company ) shareholders and potential investors with information regarding the Company and its subsidiaries, including management s assessment of the Company s future plans and operations, certain statements and graphs throughout these presentations contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 or forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking statements or information in these presentations include, but are not limited to, statements and graphs (collectively statements ) with respect to: the projected ability of the Company to meet all its plans for the Deep Panuke project; the projected ability to meet all the target levels of safety for the Deep Panuke project; the projected specifications for the Deep Panuke s production field centre; the projected ability to comply with the key environmental design criteria for the Deep Panuke project; the ability to fully implement the planned safety studies and key safety features for the Deep Panuke project; and the various future-oriented conclusions derived from the projections and forecasts incorporated in these presentations. You are cautioned not to place undue reliance on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which it is based will occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in these presentations include, but are not limited to: volatility of and assumptions regarding crude oil and natural gas prices, assumptions based upon the Company's current guidance, fluctuations in currency and interest rates, product supply and demand, market competition, risks inherent in the Company s North American and foreign oil and gas and midstream operations, risks inherent in the Company s marketing operations, including credit risks, imprecision of reserves estimates and estimates of recoverable quantities of oil, bitumen, natural gas and liquids from resource plays and other sources not currently classified as proved reserves, the ability of the Company and ConocoPhillips to successfully manage and operate the North American integrated heavy oil business and the ability of the parties to obtain necessary regulatory approvals, refining and marketing margins, potential disruption or unexpected technical difficulties in developing new products and manufacturing processes, potential failure of new products to achieve acceptance in the market, unexpected cost increases or technical difficulties in constructing or modifying manufacturing or refining facilities, unexpected difficulties in manufacturing, transporting or refining synthetic crude oil, risks associated with technology, the Company s ability to replace and expand oil and gas reserves, the Company s ability to either generate sufficient cash flow from operations to meet its current and future obligations or obtain external sources of debt and equity capital, general economic and business conditions, the Company s ability to enter into or renew leases, the timing and costs of well and pipeline construction, the Company s ability to make capital investments and the amounts of capital investments, imprecision in estimating the timing, costs and levels of production and drilling, the results of exploration and development drilling, imprecision in estimates of future production capacity, the Company s ability to secure adequate product transportation, uncertainty in the amounts and timing of royalty payments, imprecision in estimates of product sales, changes in royalty, tax, environmental and other laws or regulations or the interpretations of such laws or regulations, political and economic conditions in the countries in which the Company operates, the risk of war, hostilities, civil insurrection and instability affecting countries in which the Company operates and terrorist threats, risks associated with existing and potential future lawsuits and regulatory actions brought against the Company, and such other risks and uncertainties described from time to time in the Company s reports and filings with the Canadian securities authorities and the United States Securities and Exchange Commission. Accordingly, the Company cautions that events or circumstances could cause actual results to differ materially from those predicted. Statements relating to reserves or resources or resource potential are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves and resource potential described exist in the quantities predicted or estimated, and can be profitably produced in the future. You are cautioned that the foregoing list of important factors is not exhaustive. You are further cautioned not to place undue reliance on forward-looking statements contained in these presentations, which are made as of the date hereof, and, except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking statements contained in these presentations are expressly qualified by this cautionary statement.

3 Deep Panuke EHS Risk Management Protect People, Environment, Assets. Follow EHS Risk Management Guidelines. Follow regulatory framework. Utilize in-house and external expertise and follow established industry best practices. EnCana Corporation

4 Deep Panuke Safety Risk Management EnCana Corporation Ensure platform is designed and constructed in accordance with applicable CNSOPB Regulations. Meet or Exceed Target Levels of Safety for the project. Complete engineering design, safety studies and risk assessments. Update the Concept Safety Assessment (CSA). Demonstrate that the project safety risks have been reduced to as low as reasonably practicable (ALARP).

5 Target Levels of Safety and Risk Matrix EnCana Corporation Quantitative vs. Qualitative Risk Criteria TLS (/yr) Project Goal Individual Risk Per Annum < 1.0 x 10-3 ALARP Loss of Key Safety Functions Single Major Accident Event All Major Accident Events < 1.0 x 10-4 < 1.0 x 10-3 ALARP Group Risk (for 68 POB) > 50 Fatalities < 2.72 x 10-4 ALARP 4 Serious 3 Major 2 Moderate 1 Minor Categories People Environment Assets A Remote B Unlikely C Likely D Frequent Reputation

6 EnCana Corporation CNSOPB Regulations Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act Installation Regulations Production & Conservation Regulations Diving Regulation Occupt. Health & Safety Regulations Drilling Regulations Spill & Debris Liability Regulations Geophysical Operations Regulations Certificate of Fitness Regulations Installation Regulations Occupt. Health & Safety Regulations Production & Conservation Regulations Drilling Regulations Diving Regulation Atlantic Energy Roundtable initiative to modernize Goal setting regulations are coming Deep Panuke is ready

7 EnCana Corporation Topsides - Process Flow Diagram Well Fluids Feed Gas Compressor 2 nd Stage Separator Gas Sweetening (Amine) Unit TEG Contactor Low Temp Separator Export Gas Compressors Fuel Gas Export Gas to Shore Inlet Separator Acid Gas Compression Acid Gas/ Condensate to Injection Stabilizer Column Condensate to Gas Turbines Condensate Stabilizer Surge Tank Stabilized Condensate Surge Drum

8 EnCana Corporation Topsides Systems and Equipment Process Separators Sour gas sweetening Gas dehydration Produced Water Treatment Condensate Stabilization Inlet and Export Compression Acid Gas Compression Flare and closed drains Utilities & Support Tri Fuel Power Gens Seawater / freshwater Heating and cooling medium Compressed air / Nitrogen Chemical injection Fuel gas / diesel / Helifuel Open drains

9 Deep Panuke Subsea Layout EnCana Corporation

10 3D Model View - preliminary Production Field Centre EnCana Corporation

11 Planned Safety Studies to Support the CSA EnCana Corporation Hazard Identification reviews (HAZID) Hazard and Operability studies (HAZOP) PFC Quantitative Risk assessment Fire and Gas Detection System review Fire Protection Systems review Fire Consequence analysis Blast Modeling study Heat, Smoke and Gas Dispersion analysis Emergency System Survivability analysis Escape, Temporary Refuge, Evacuation & Rescue analysis Fugitive Emissions study Safety Integrity Levels (SIL) study Hazardous Area Classification review Noise study Human Factors analysis Health Risk analysis Acoustically Induced Vibrations study Subsea Wells and Pipelines QRA Non Hydrocarbon Hazards analysis (including Ship Collision study) Dropped Object study Safety Critical Elements Identification & Performance Standards

12 EnCana Corporation Key Safety Features Safety incorporated in all aspects of the project design and operation Fire & Gas Detection system including line of sight detectors Emergency Shutdown / Blowdown Systems Active and Passive Fire Protection Distributed Breathing Air System and portable breathing units Fire/Blast wall protecting Quarters Dedicated escape routes with 2 hour Temporary Safe Refuge Life Saving and evacuation equipment Dedicated HVAC system for acid gas enclosure Standby Vessel at facility at all times Safety Integrity Level (SIL) rated emergency control system Safe operating procedures Risk based maintenance and inspection program Technical Training and competency program for all offshore personnel Individual and team survival and emergency training

13 Thanks for your time. Q&A to follow Risk Management session.

14 EnCana Corporation PFC Specifications Processing capacity: up to 300 MMscf/d sales gas Turndown capability: 40 MMscf/d Water handling: up to 40,000 bbl/d Condensate production: up to 2360 bbl/d Acid gas injection: up to 4.8 MMscf/d Producing wells: up to 8 Onboard power: ~ 52Mw Personnel Onboard up to 100 w/o Hydrocarbons up to 68 w/ Hydrocarbons

15 Key Environmental Design Criteria 100 Yr. Ambient Temperature (ºC) : -20 / Yr. Water Temperature (ºC) : -1.1 / 24.6 Water Depth (m) : 44.7 Sig. 100 Yr. Wave Height (m) : Yr. Max. Wave Height (m) : Yr. One Hour Wind speed (m/s): 41.6 Design Life (Yr) - Hull/Subsea: 25 - Topsides: 20 EnCana Corporation

16 EnCana Corporation Acid Gas Injection Features Reduces the environmental footprint of acid gas flaring or incineration/scrubbing by injecting acid gas into dedicated subsea wellhead. Of all assessed alternatives for dealing with acid gas (sulphur recovery, flaring, incineration), injection is the most environmentally friendly option. Western Canada has been producing from sour gas reservoirs for decades. Canada is a leader in the safe production of sour gas and injection of acid gas. Acid gas injection avoids release of H2S though continuous flaring and also permits the capture and injection of CO2 greenhouse gasses. EnCana has installed and operates acid gas injection facilities in western Canada. Acid gas injection has been successfully implemented in offshore projects and is planned for several future sour gas projects. The potential for personnel to be in the area of a subsea release from the injection well and affected is in the order of 10E-8, well below the negligible threshold of 10E-6 typically used by industry.

17 Deep Panuke Export Pipeline EnCana Corporation

18 EnCana Corporation Offshore Sour Gas Facilities Location Operator Name Description PPM H 2 S %CO 2 North Sea Total Elgin/Franklin PUQ, WH, Subsea 50 4 North Sea Chevron Erskine PUQ, HT/HP North Sea BP Miller PUQ North Sea Nexen Buzzard PUQ, WH, Subsea 500 Irish Sea Burlington Rivers PUQ, Subsea Significant North Caspian Agip Kashagan Barge/Island 180,000 North Caspian Tengizchevroil (TCO) At shore - swamp 160,000 Persian Gulf South Pars LQ PU, WH Subsea 15,000 3 Gulf of Mexico Shell Mobile Bay Wellhead 16,000 Thailand British Gas Bongkot PUQ, Subsea, FSO N/A Canada EnCana Deep Panuke Jackup PUQ Subsea H 2 S Toxicity: STEL: 15 ppm IDLH: 100 ppm