Fire shuts down Deep Panuke

Deep Panuke: More problems for Canadian platform

Encana's troubled Deep Panuke production facility off Nova Scotia has suffered another shut in, this time due to a transformer fire.

The small fire, which broke out on Sunday evening, was contained to a single room on the mobile offshore production unit, according to the Canada-Nova Scotia Offshore Petroleum Board,

The fire was extinguished quickly by the Mopu's fire-suppression system, the board said. There were no reports of injuries or environmental impact.

Encana is investigating the cause of the incident. There was no immediate comment from SBM Offshore, which owns the Mopu and operates on behalf of Encana.

There was no time frame for when production would restart.

Deep Panuke hit full production in December last year after several fits and starts. Its capacity is 300 million cubic feet per day of gas.

This was at least the second production shut-in at Deep Panuke this year.

The C$1 billion (US$909 million) facility was also shut for two weeks in November 2013 in order to make the final push to full production.

Start-up had originally been expected in 2010, but continued delays and conflict between Encana and SBM pushed it back.

A fire in 2013 was blamed on electrical issues that were a result of a failure to conduct annual maintenance inspections, according to the Canadian Press.

It was not clear if the same issues were behind the most recent fire.

Encana is reportedly in the market to sell Deep Panuke, and is working with financial advisers on a sale that could be worth between $1 billion and $2 billion.

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