Home page

Text size

E-mail this page

LLI GOLINE/NORMAN WELLS
Work slated to continue this winter on $630 million in oil and gas exploration leases at the Sahtu region's Canol shale formation was the focus of readiness sessions held in Norman Wells last week.

Husky Energy Inc., whose 2006 drilling and testing program in the Sahtu region is pictured here, was among the industry participants at a two-day Sahtu Exploration Readiness Session last week in Norman Wells. - photo courtesy of Husky Energy Inc.

The two-day Sahtu Exploration Readiness Session brought together industry, government officials and leaders from Sahtu region communities in anticipation of the drilling programs planned to continue on the Central Mackenzie Valley resources.

"Indications show that possibilities of this being a long-term production field or development field is right up there with any other huge oil play," said Sahtu MLA Norman Yakeleya, who attended the sessions last Tuesday and Wednesday with a number of senior GNWT officials.

"Right now, the Sahtu is the sweet spot in the North.

"Everybody's getting together to ask the basic questions -- how do we prepare for a big oil play here and what type of opportunities are going to come and what do we need to do to get ready for it."

Husky Energy Inc., Imperial Oil Resources, Akita Drilling Ltd., Conoco-Phillips, MGM Energy Corp., Shell, and other oil and gas producers were represented at the exploration readiness session, which included presentations on business and work opportunities expected with the Central Mackenzie Valley exploration, and the preparation of local businesses for contract work in the oil exploration programs.

"Leaders in the Sahtu were there, all in the same room, listening to presentations from experts in geology, experts in seismic work, industry that's involved in the resource development there, and also the government's perspective," said Industry, Tourism, and Investment Minister David Ramsay, who presented last Wednesday at the session with a speech that focused on working together.

"In order to move the resource development forward in the Sahtu we need to work together," Ramsay said. "Northerners have a history of trying to work together and that spirit needs to be maintained as we move forward with the development in the Sahtu, so we could maximize opportunities for residents in the Sahtu and in the Northwest Territories and that's our belief that we can do that."

If advanced through exploration, the Canol shale resources could employ hundreds and thousands of people if moved to production by the active companies in the area, Ramsay said.

"This resource play in the Central Mackenzie and the Sahtu has immense, immense potential," he said. "I really do believe we're sitting on some great potential."

Infrastructure developments that could come with the exploration activity include a $40-million road this winter, more housing over the next few years, and a waste management site.

Drug and alcohol treatment programs are also being discussed to maximize community employment in the region without the social impacts, Yakeleya said.

Skills development and training in the region is among the important programs that should be established in anticipation of the activity, said Pius Rolheiser, public and government affairs official with Imperial Oil.

"We certainly recognize that local employment is a key to a successful long-term operation," said Rolheiser, adding training programs for its current Norman Wells oil and gas operation increased the amount of aboriginal and Northern employees at the production program to one third of about 60 full-time employees.

Imperial's exploration plans for its Central Mackenzie Valley leases are still preliminary, Rolheiser said, and the company does not have plans to begin work until 2014.

Husky has already announced plans to return to vertical wells drilled last winter near Norman Wells, and MGM Energy has also announced plans to conduct a program which includes vertical fracturing.

Following the two-day readiness session, Sahtu regional land corporations also met to talk about how the communities in the region could work together to benefit from the activity.

We welcome your opinions. Click here to e-mail a letter to the editor.