Husky looking for contractors for White Rose project development

Husky Energy is looking for contractors to help the company develop plans to produce and ship natural gas from the proposed White Rose oilfield off the coast of Newfoundland. Husky said it is asking for "expressions of interest" from contractors and engineering firms to examine the technical, economic and regulatory issues key to the safe and reliable shipment of gas from the Grand Banks.
White Rose, located on the Jeanne d'Arc basin about 350 km east of St John's, New Foundland, is about 65 % completed and remains on target to begin producing oil by either late next year, or early 2006. However, Husky is also looking to broaden the offshore project to include natural gas, a fuel already being produced by other energy companies from the Sable Island project off the coast of Nova Scotia.

Following a review of conceptual designs, Husky said it may choose one or more companies for final proposals that would outline the potential gas project's objectives and energy delivery timetables.
"Husky is pleased to commence the evaluation of this important resource," John Lau, the Calgary energy company's president and CEO, said. "This is the first step which may help realize gas production from White Rose within a decade. In order to evaluate natural gas development in the Jeanne d'Arc Basin, new technologies will need to be developed and today we believe this is possible."

The waters off the coast of Newfoundland and Labrador are estimated to contain about 2.1 bn barrels of oil and 9.6 tcf of natural gas, including 2.7 tcf of gas at White Rose.
Husky, controlled by Hong Kong billionaire Li Ka-shing, owns 72 % of the $ 2.35 bn White Rose project, as well as a minor stake in Terra Nova, another offshore project. The company also owns the Lloydminster heavy oil upgrader and plans for two oilsands plants in north-eastern Alberta and operates a gasoline station network.

Husky said its initial review of likely technologies suggests that shipping compressed and pressurized natural gas by tanker from the White Rose development has potential.
"However, Husky wishes to consider other technologies and is inviting proposals that encompass all such technologies." Husky said it's asking companies to submit their expression of interest proposals by the end of June.

Husky, based in Calgary, generated revenues of nearly $ 7.7 bn last year and produced a profit of $ 1.3 bn.
The company employs about 3,000 people.