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North Amethyst sparkles for Husky

Canadian producer Husky Energy has been given the go-ahead to develop the North Amethyst oilfield, in the Jeanne d'Arc basin, off Newfoundland.

Company boss John Lau said that the federal and provincial governments and regulators had approved plans for the field, which lies near the White Rose field, about 350 kilometres south-east of St John's.

North Amethyst is the first of three satellite oil pools near White Rose to be developed, with first oil planned for late next year or early 2010.

The oil pool, which was identified by delineation drilling in 2006, is estimated to contain 70 million barrels of proved plus probable reserves, with 28.2 million barrels proved and 41.8 million barrels probable as of 31 December 2007.

Husky plans to develop North Amethyst and other nearby oil pools via a series of subsea tie-backs to the SeaRose floating production, storage and offloading vessel.

An application to develop the South White Rose Extension tie-back received government approval in September last year, and evaluation of the resource potential at the West White Rose Extension is continuing, Husky said.

Lau said: "Husky has already secured a drilling rig and reached agreement with the province on royalties and benefits. Approval from the federal and provincial governments was the last major requirement to bring this project forward."

A project team is working on advance engineering, design and future development plans for all three tie-ins.

Husky dredged a glory hole at the North Amethyst development site in summer last year, and plans to start development drilling later this year.

At present. a total of 11 wells are planned for the North Amethyst satellite tie-back.

Husky operates the White Rose oilfield and satellites, and holds a 68.875% stake in the White Rose Satellite tie-back project. Petro-Canada holds a 26.125% share of the project, while the government of Newfoundland & Labrador has 5% which it holds through the province's energy corporation.

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