Journey to Hebron – Opportunities Abound

Canada’s greatest offshore oil assets lie 350 kilometers off its coast. It’s Newfoundland, it’s rugged, it’s powerful, and it’s where thousands of oil and gas people live as their second home. The Jeanne d’Arc Basin of the Atlantic Ocean is a playground for ­sea­faring pioneers and ­courageous aviators. It houses one of the world’s largest oil platforms, known as ­Hibernia; it also boasts mega-oil projects such as Terra Nova and White Rose. Hebron is the next offshore project to come on stream with first oil expected before the end of 2017.

Business and Employment Opportunities

The Drilling Support Module (one of the Topsides modules) for the Hebron Project is officially under construction. In May, the first steel was cut at the Kiewit facility in Marystown/Cow Head, NL, signaling another step toward greater opportunity in Newfoundland and Labrador and the employment of another 350 workers, bringing the total employment impact to 2,400. Fifty-nine percent of those workers are from the province.

Kiewit Offshore Services was awarded the Drilling Support Module Fabrication subcontracted by WorleyParsons Canada in January 2013. Kiewit is operating out of the former Marystown shipyard, which has been overhauled to provide the infrastructure and equipment necessary for building the massive module. The renovation alone has provided contractors in the region with an opportunity for increased business, and it is expected the facility will provide future opportunities for the province.

Like other modules fabricated off-site, once fabrication of the Drilling Support Module is complete, it will be transported to the Bull Arm site for assembly, hook up, and commissioning.

Contract Opportunities

According to the Newfoundland Labrador Benefits Agreement, the Hebron Project provides first consideration to NL suppliers when possible. This agreement stands to build expertise for businesses to work on a more global level, which will enrich the local economy. For more information about subcontractors for the various components of the Hebron Project, click here. The following list includes some of the major contracts awarded or are soon-to-be awarded.

Topsides: Awarded To Worleyparsons Canada

• Ancillaries – modules will be built in NL
  • Helideck – award is scheduled for Q4-2013
  • Flare Boom – award is scheduled for Q4-2013
  • Lifeboat Station – award is scheduled for Q2-2013
• Living Quarters – engineering and construction will be conducted in NL
  • awarded to Northeastern Constructors, Ltd. – Apply Leirvik Partnership (NEAL) in June 2012
  • As part of the Gender Equity and Diversity Program, living quarters will provide safe and respectful accommodations for women and men.
• Derrick Equipment Set
  • awarded to Hyundai Heavy Industries in Ulsan, Korea
  • pre-fabricated component (the derrick itself) – awarded to Cameron Sense
• Drilling Support Module – fabricated in NL
  • awarded to Kiewit Offshore Services facility in Marystown/Cow Head
• Utilities/Process Module
  • awarded to Hyundai Heavy Industries Co. Ltd. (HHI) in Korea
• Installation
  • awarded to Fagioli S.p.A in Texas in July 2012
• Integration
  • EOI issued in Q1-2013
• Commissioning
  • execution strategy under development

For more information about procurement with WorleyParsons Canada, click here.

Gravity-based Structure: Awarded To Kiewit-Kvaerner Contractors (KKC)

(for list of contractors and future opportunities, click here)

• Mechanical Outfitting and Rebar Fabrication
  • GBS Skirt – awarded and completed
  • Titanium and Alloy Piping – majority awarded and completed in late 2012
    • Remaining work to be awarded in Q2 or Q3-2013
  • Carbon Steel Fabrication – all packages competitively bid in 2012
  • Rebar Fabrication – awarded
• Early Works / Site Development (for list of contractors and future opportunities, visit http://www.kkc-gbs.com/procurement/early-works)
  • Dry Dock
    • Bund Wall Engineering – awarded, completed, and successfully dewaters in Q3 2013
    • Bund Wall Construction Materials / Equipment – complete
    • Other Dry Dock Packages – awarded and substantially complete
    • Long Lead Equipment – awarded
    • Camp and Common Areas – awarded
• Marine Operations (for a list of contractors and future opportunities, visit http://www.kkc-gbs.com/procurement/marine)
  • New Barge Construction – awarded in Q3-2012
  • Deep Water Site Mooring System – tender package released and expected to be awarded in Q2-2013
  • Out of Dock – will take place in 2014
  • GBS Construction Support – required in 2014
  • GBS Solid Ballasting – will take place in 2014

For more information about procurement with KKC, click here.

Community Opportunities

Positive impacts from the Hebron Project do not end with an enhanced local skill set from employment and subcontracts. Communities are also benefiting from the Hebron Project. In May, the Hebron Project donated $100,000 to the Petty Harbour Mini Aquarium—an interactive ocean science lab that will provide opportunities for learning for students, families, and tourists. This recent donation is not unlike other contributions made since the project’s inception. The Hebron Project has provided scholarships and funds that have provided learning opportunities for students and enhanced community building and spirit.

Energy Sector  Opportunities

Hebron is 350 kilometers offshore and under 300 feet of water in the Atlantic Ocean, in an area known as iceberg alley. The massive GBS is designed to withstand treacherous, icy conditions. Its technology is similar to nearby Hibernia (http://www.hibernia.ca/). This added experience of designing structures to withstand ice for offshore oil drilling will be invaluable to ExxonMobil as well as the Hebron Project contractors and subcontractors for future prospects in the offshore energy sector.

Hebron is an oilfield located offshore Newfoundland and Labrador in the Jeanne d’Arc Basin, 350 kilometers southeast of St. John’s, NL. The Hebron Project co-venturers are ExxonMobil Canada Properties (operator), Chevron Canada, Suncor Energy Inc., Statoil Canada, and Nalcor Energy. For more information on the Hebron Project, visit the Hebron Project website.