an overview of atlantic canada exploration and the
TRANSCRIPT
September, 2002September, 2002
An Overview of Atlantic CanadaAn Overview of Atlantic CanadaExploration and the EnvironmentalExploration and the EnvironmentalLegislative Process, Offshore NovaLegislative Process, Offshore NovaScotia, CanadaScotia, Canada
John HoggJohn HoggVice President, Atlantic CanadaVice President, Atlantic Canada
Offshore New Ventures ExplorationOffshore New Ventures Exploration
Facts about EnCana CorporationFacts about EnCana Corporation!! High quality assets � Opportunity Rich PortfolioHigh quality assets � Opportunity Rich Portfolio
!! Strong North American natural gas strategyStrong North American natural gas strategy
!! Superior oil growth; domestic and internationalSuperior oil growth; domestic and international
!! Balance sheet positioned for growthBalance sheet positioned for growth
!! 590,000 BOE daily production (2002F, after royalties);590,000 BOE daily production (2002F, after royalties);64% gas64% gas
!! 2.3 billion BOE proved reserves (year-end 2001,2.3 billion BOE proved reserves (year-end 2001,after royalties); 51% gasafter royalties); 51% gas
!! 90% of reserves and production in North America90% of reserves and production in North America36 million acres net undeveloped land36 million acres net undeveloped land
!! Approximately US$20 billion Value (as of July 24, 2002)Approximately US$20 billion Value (as of July 24, 2002)
Division Breakdown
2002 EnCana Capital Budget2002 EnCana Capital BudgetUS$3.2 Billion Gross*US$3.2 Billion Gross*
Onshore North AmericaBreakdown
SAGD6%
Syncrude9%
Natural Gas63%
Other Oil22%
Offshore & New Ventures Exploration
14%
Offshore &International Development
12%
Onshore North America69%
Marketing & Midstream5%
* Prior to planned net dispositions of US$950 million
Halifax
A World Class International IndependentA World Class International Independent
Houston
Calgary
Quito
London
DubaiBahrain/QatarBahrain/Qatar
YemenYemen
AustraliaAustralia
U.K. North SeaU.K. North Sea
Atlantic CanadaAtlantic Canada
EcuadorEcuador
U.S. Gulf of MexicoU.S. Gulf of Mexico
Offices
International ProjectsInternational Projects
Legend
Rio de Janeiro
Sana�a
DohaN�Djamena
ChadChad
GhanaGhana
Alaska/Mackenzie DeltaAlaska/Mackenzie Delta
BrazilBrazil
Western Canada Western Canada
Atlantic CanadaAtlantic Canada
U.K.U.K.
Gulf of MexicoGulf of Mexico
EcuadorEcuador
U.S. RockiesU.S. Rockies
Six Key Growth PlatformsSix Key Growth Platforms
Alaska/MackenzieDelta
Gulf of Mexico
North America Offshore BasinsNorth America Offshore Basins
Scotian Shelf
US EasternSeaboard
Newfoundland
North of 60°North of 60°
SaskatchewanSaskatchewan
Grand BanksGrand Banksand Scotian Shelfand Scotian Shelf
Other FrontierOther Frontier
BritishBritishColumbiaColumbia 505050 AlbertaAlberta
270270270
636363
175175175
(includes other regions offshore East Coast & West Coast)
99Remaining
Produced
Source: National Energy Board / Canadian Association of Petroleum Producers Source: National Energy Board / Canadian Association of Petroleum Producers
Canada: How Much Gas is Out There?Canada: How Much Gas is Out There?
Item 1
Item 1
898989
US Atlantic MarginUS Atlantic Margin!! Area Area > > 250,000 km250,000 km22
!! ReservoirReservoir
�� Jurassic CarbonatesJurassic Carbonates
�� JuraJura-Cretaceous Sands-Cretaceous Sands
�� Tertiary SandstonesTertiary Sandstones
!! SourceSource
�� Jurassic\CretaceousJurassic\CretaceousMarine Marine ShalesShales
!! TrapsTraps
�� ListiricListiric Normal Fault Normal FaultPlaysPlays
�� Stratigraphic Pinch-outsStratigraphic Pinch-outs
�� Reef MarginsReef Margins
!! Potential (Potential (USGSUSGS))
�� 16 - 45 16 - 45 TcfTcf
�� 1 - 4 Billion Barrels1 - 4 Billion Barrels
HalifaxHalifax
St. John�sSt. John�s
Scotian ShelfScotian Shelf
GrandGrandBanksBanks
Sable OffshoreSable OffshoreEnergy ProjectEnergy Project
150 km150 km
St. JohnSt. John
HiberniaHiberniaCharlottetownCharlottetown
TerraTerraNovaNova
DeepDeepPanukePanuke
Atlantic CanadaAtlantic Canada
BangorBangor
HiberniaHiberniaProductionProductionPlatformPlatform
Terra Nova Floating Production SystemTerra Nova Floating Production System
HalifaxHalifax
Atlantic Canada Gas TransportationAtlantic Canada Gas Transportation
AnticostiAnticosti Basin Basin
MagdalenMagdalenBasinBasin
Scotia
n Bas
in
EnCana�sDeep Panuke400 MMcf/d � 2005
St. John�sSt. John�s
SOEI ~ 500MMcf/d
BostonBoston
Sable Offshore Energy PlatformsSable Offshore Energy Platforms
Sable Thebaud Central FacilitySable Thebaud Central Facility
Deep Panuke Facilities DesignDeep Panuke Facilities Design
Atlantic Canada Mesozoic SubbasinsAtlantic Canada Mesozoic Subbasins60°W65°W70°W
New Brunswick P.E.I.
Newfoundland
GrandGrandBanksBanks
Laurentian Channel
Laurentian Channel
2000
km
45°N
200m200m
Nova Scotia
Scotian ShelfScotian Shelf
2000m2000m
2000m2000m
Quebec
200m200m
200m200m
45°W50°W55°W
45°N
50°N
HalifaxHalifax
St. John�sSt. John�s
Atlantic CanadaAtlantic CanadaRegional Land OverviewRegional Land Overview
45°N
50°N
P.E.I.P.E.I.
NewfoundlandNewfoundland
GrandBanks
120 Miles
Nova ScotiaNova Scotia
Scotian Shelf
2000m
200m
200m
NewNewBrunswickBrunswick
60°W65°W 55°W 50°W
200m
2000m
Laurentian Channel
45°W
EnCana Corporation Acreage
Scotian Shelf Scotian Shelf SubbasinsSubbasinsSydney
LaHave
New BrunswickP.E.I.
200m200m
2000m2000m
60 Miles60 Miles
Scotian ShelfScotian Shelf
HalifaxHalifaxFundy
45° N45° N
Abenaki
GeorgesBank
Shelbourne
Banquereau
OrpheusGraben
Laurentian
Scotian Salt Province
60°W60°W65°W65°W 55°W55°W
Nova Scotia
SOEISOEI
Regulation of Canada East Coast WatersRegulation of Canada East Coast Waters
!! The Government of Canada and the AtlanticThe Government of Canada and the AtlanticProvinces agreed to jointly administer theProvinces agreed to jointly administer theoffshore by use of independent offshore boardsoffshore by use of independent offshore boards
!! Two Boards: Canada-Nova Scotia and Canada-Two Boards: Canada-Nova Scotia and Canada-Newfoundland Offshore Petroleum BoardsNewfoundland Offshore Petroleum Boards
!! Boards consist of two federal, two provincial andBoards consist of two federal, two provincial andone joint membersone joint members
!! Each Board Staff Administers: HSE, ResourceEach Board Staff Administers: HSE, ResourceRights, Local Benefits, and OperationsRights, Local Benefits, and OperationsManagementManagement
Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board!! Mission StatementMission Statement
!! To regulate petroleum activities offshore Nova Scotia in an efficient, fair andTo regulate petroleum activities offshore Nova Scotia in an efficient, fair andcompetent manner.competent manner.
!! MandateMandate
!! The Canada-Nova Scotia Offshore Petroleum Board is the independent jointThe Canada-Nova Scotia Offshore Petroleum Board is the independent jointagency of the Governments of Canada and Nova Scotia established pursuant toagency of the Governments of Canada and Nova Scotia established pursuant tothe federal Canada-Nova Scotia Offshore Petroleum Resources Accordthe federal Canada-Nova Scotia Offshore Petroleum Resources AccordImplementation Act and the provincial Canada-Nova Scotia Offshore PetroleumImplementation Act and the provincial Canada-Nova Scotia Offshore PetroleumResources Accord Implementation (Nova Scotia) Act. It is responsible forResources Accord Implementation (Nova Scotia) Act. It is responsible forregulation of petroleum affairs and safe practices offshore Nova Scotia.regulation of petroleum affairs and safe practices offshore Nova Scotia.
!! The Board's principal responsibilities includeThe Board's principal responsibilities include
!! Ensuring the safe conduct of offshore operationsEnsuring the safe conduct of offshore operations
!! Protection of the environment during offshore petroleum activitiesProtection of the environment during offshore petroleum activities
!! Management of offshore oil and gas resourcesManagement of offshore oil and gas resources
!! Review of industrial benefits and employment opportunitiesReview of industrial benefits and employment opportunities
!! Issuance of licenses for offshore exploration and developmentIssuance of licenses for offshore exploration and development
!! Resource evaluation, data collection and distributionResource evaluation, data collection and distribution
CNSOPB Land Issuance & Program ProceduresCNSOPB Land Issuance & Program ProceduresOverviewOverview
Nomination of Land
CNSOPB Strategic EA
Call for Bids
Exploration License
Seismic Program
Geophysical Program
Geotechnical Program
Drilling Program
Environmental Procedures for Environmental Procedures for EL�sEL�sStandard Field Program (Common)Standard Field Program (Common)
EnvironmentalAssessment (EA)
Oil SpillResponse Plan
(OSRP)
AdditionalProgram Specific
Requirements
Program�s Approval
Reporting
OperationalProcedures
Consultation ProcessPL
AN
NIN
GR
EPT.
OPS
Environmental ProceduresEnvironmental ProceduresSeismic Program (Specific Process)Seismic Program (Specific Process)
Environmental AssessmentIdentify critical time/areas forfishing/mammals/spawning
OSRP
Program�s Approval
FLO Report
Fisheries Liaison Observer (FLO)Ramp-up of airguns
Consultation�FEAC (Fisheries EnvironmentalAdvisory Committee) Meeting
�Direct information to FisheriesRepresentatives
�Consultation through Canada-Nova Scotia Offshore PetroleumBoard (CNSOPB) and theFederal Departments ofEnvironment Canada and theDepartment of Fisheries andOceans (DFO)
�Notices to Mariners
�Fisheries Compensation
PLA
NN
ING
REP
T.O
PS
Environmental ProceduresEnvironmental ProceduresExploration Drilling Program, Pre-Drill (Specific Process)Exploration Drilling Program, Pre-Drill (Specific Process)
EnvironmentalAssessment
OSRP
Program�s Approval
Consultation
�FEAC (Fisheries EnvironmentalAdvisory Committee) meeting
�direct info to fisheries reps
�consultation through CNSOPB,Environment Canada and DFO
PLA
NN
ING
BaselineBenthic
Data
DrillingChemicalScreening
Rig�sMetoceanEquipment
MetoceanData for
CertifyingAuthority
Environmental ProceduresEnvironmental ProceduresExploration Drilling, While Drilling, (Specific Process)Exploration Drilling, While Drilling, (Specific Process)
PhysicalEnvironmental
MonitoringProgram (meteo,waves, currents)
Consultation
� Notices toMariners
� FisheriesCompensation
REP
T.O
PER
ATI
ON
S
OWTG(oil on cuttings,
bilge/ballast/deckdrainage water,
sanitary/foodwaste�)
EnvironmentalMonitoring
Program (EMP)(bird monitoring,benthic survey,tainting study�)
Metocean End ofWell Report
Env. ComplianceMonitoring Data
ECMRpt
FLOReport
FLO(optional)
Environmental ProceduresEnvironmental ProceduresEnvironmental Assessment Process 2003 ModificationsEnvironmental Assessment Process 2003 Modifications
!! Existing CNSOPB Process (Timelines)Existing CNSOPB Process (Timelines)!! 30-day review by CNSOPB, DFO, Environment Canada30-day review by CNSOPB, DFO, Environment Canada
!! NS Seismic Class Screening EA (1998, LGL document)NS Seismic Class Screening EA (1998, LGL document)
!! NS Drilling Generic Assessment (2000, LGL document)NS Drilling Generic Assessment (2000, LGL document)
!! New CEAA (Canadian Environmental AssessmentNew CEAA (Canadian Environmental AssessmentAct) Process TimelinesAct) Process Timelines
!! Effective Q1/03 (earliest)Effective Q1/03 (earliest)
!! Screening Study: Screening Study: wellsitewellsite surveys, seismic surveys, and surveys, seismic surveys, andexploration drilling in area previously assessed under CEAAexploration drilling in area previously assessed under CEAA
!! 6-month review6-month review
!! Comprehensive Study: exploration drilling in new areaComprehensive Study: exploration drilling in new area
!! 12-month review12-month review
Websites for Additional InformationWebsites for Additional Information!! Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board
�� www.cnsopb.ns.cawww.cnsopb.ns.ca
!! Canada Newfoundland Offshore Petroleum BoardCanada Newfoundland Offshore Petroleum Board
�� www.cnsopb.nfnet.com/www.cnsopb.nfnet.com/
!! Terra Nova ProjectTerra Nova Project
�� http://www.terranovaproject.com/http://www.terranovaproject.com/
!! HiberniaHibernia
�� www.hibernia.ca/www.hibernia.ca/
!! Sable Offshore Energy Inc.Sable Offshore Energy Inc.
�� www.soep.comwww.soep.com