22 C
Georgetown
Saturday, February 27, 2021

Chevron green lights its first Canadian shale development

Must Read

In historic move, Exxon takes Canadian oil sands off its books

(Bloomberg) --Exxon Mobil erased almost every drop of oil-sands crude from its books in a sweeping revision of worldwide...

Reassembly of gas compressor completed, testing to begin – ExxonMobil

ExxonMobil Guyana said this week that all rework and reassembly of the flash gas compressor that encountered challenges in...

Exxon sees unprecedented progress in local content development in Guyana – Routledge

President of ExxonMobil Guyana, Alistair Routledge said this week he has seen unprecedented levels of progress in local content...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(Reuters) – Chevron Canada, a unit of global oil major Chevron Corp, is forging ahead with its first ever Canadian shale play development, targeting the East Kaybob region of central Alberta’s Duvernay formation.

The decision, announced by the company on Monday, is a rare bright spot for Canada’s oil industry, which was hard hit by the global crude price downturn. International energy firms sold off nearly $23 billion in assets this year alone.

Guyana to consider Chevron’s quest for offshore acreage

He did not comment on Chevron’s expected production or capital spend in the Duvernay, citing corporate disclosure rules, but said it was a major step forward for the company which has spent three years appraising the Kaybob area.

“This is a very significant business opportunity for Chevron Canada and our very first foray into development in the liquids-rich Duvernay,” Sollid told Reuters.

“Since we began appraisal drilling we have made significant improvements in costs and cycle times by applying Chevron’s learnings in other North American shale plays including the Permian in Texas.”

The Duvernay formation is one of Canada’s top shale plays and holds the country’s largest marketable resources of unconventional light shale oil and condensate, according to the national energy regulator.

Canada’s energy industry is still dominated by the vast oil sands sector in northern Alberta, but investment is climbing in the Duvernay and Montney shale basins, which offer faster returns and lower capital requirements than the oil sands.

Chevron first acquired leases in the Duvernay around eight years ago and is now one of the region’s biggest landholders.

The company also holds undeveloped land in the Liard and Horn River basins in western Canada, a 20 percent stake in Canadian Natural Resource Ltd’sAthabasca Oil Sands Project and non-operator interests in a handful of deepwater projects off the east coast of Canada.

As part of Chevron’s East Kaybob development Calgary-based Pembina Pipeline Corp will spend C$290 million building infrastructure to ship and process gas and condensate, which is expected to be in service by mid to late 2019.

“We look forward to continuing to develop future Duvernay infrastructure needs over the long-term,” said Jaret Sprott, Pembina’s vice president of gas services.

Latest News

In historic move, Exxon takes Canadian oil sands off its books

(Bloomberg) --Exxon Mobil erased almost every drop of oil-sands crude from its books in a sweeping revision of worldwide...

Reassembly of gas compressor completed, testing to begin – ExxonMobil

ExxonMobil Guyana said this week that all rework and reassembly of the flash gas compressor that encountered challenges in January have been completed and...

Exxon sees unprecedented progress in local content development in Guyana – Routledge

President of ExxonMobil Guyana, Alistair Routledge said this week he has seen unprecedented levels of progress in local content development and stressed the importance...

Foreign investors crucial to Guyana’s development, says government officials

Chief Executive Officer of the Guyana Office for Investment (GO-Invest), Dr. Peter Ramsaroop, days ago reiterated the importance of foreign direct investment to Guyana’s...

Tullow Oil reaches over US$1 billion reserve-based loan agreement with banks

U.K. based multinational oil and gas exploration company Tullow Oil said on Friday it has been able to finalise a more than US$1 billion...

More Articles Like This