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BEAUFORT DELTA
Chevron Canada is taking the first steps in its offshore oil and gas exploration program, according to Leif Sollid, a senior communications adviser for the company.

EL460 sits approximately 120-km offshore from Tuktoyaktuk in the Beaufort Sea. Chevron Canada is planning to conduct a 3D seismic survey in the 2,060-sq.-km parcel this summer. - photo courtesy of Chevron Canada

On Feb. 20 the company issued a request for expressions of interest from qualified companies to conduct a 3D seismic survey in one of their parcels – EL460 – 120-km offshore from Tuktoyaktuk. If Chevron is successful in finding a company for the work, surveying could start as early as May.

"This is a precursor that could potentially lead to making an application to drill, and then we would have to go through all the different steps and meet all the different regulations," Sollid said.

The survey images collected will be analyzed to see if they support possible oil and gas reservoirs, he said.

"Out of that we will be making decisions on whether we would proceed with a possible exploration program, which would mean drilling, or not," he said. "There's no way we can say at this point. That's what the seismic survey will help us determine."

Chevron has a 60 per cent stake in EL460, and Statoil, a Norwegian company, owns the remaining 40 per cent.

Sollid said that because of the difficult ice conditions, as well as the complexity of the work that is needed to be done, there likely won't be job opportunities for local residents in Tuktoyaktuk.

Instead, the majority of work would happen offshore, on a ship that will arrive from outside of Canada. It will be manned by a mostly-international crew and house experts with a high degree of specialization and training, he said.

The 2,060-sq.-km block is in water depths of 800 metres to 1,800 metres, and in addition to 3D seismic surveying, Chevron has also put out a call to companies who can conduct marine environmental observation services.

"The bottom line is Chevron will not propose any operations unless it can be conducted safely, without an environmental incident," he said.

Sollid added the company would be purchasing some supplies locally and would hire local marine observers if possible.

A document that outlines all aspects of the program has been submitted to both the Environmental Impact Screening Committee in Inuvik and the National Energy Board in Ottawa.

Chevron was awarded EL460 based on a work commitment of $103 million and to keep its licence, it must spend a minimum of that amount.

"We're not disclosing what the total cost of the survey is, but that would count toward that overall $103-million-work commitment," Sollid said.

Mayor Merven Gruben said the news that Chevron is starting work in their parcel comes as a relief to the community.

"Jeepers, it's taking forever," he said of oil and gas activity in the Beaufort. "This is a sign of things that are coming. Development's coming, it's going to happen, and things will be as busy as they were in the old days. Even bigger, busier."

He said he isn't worried about the limited employment opportunities during the seismic surveying, because it signifies there could be much more down the road.

"Everybody is well aware of what's happening and all the opportunities that could be happening. Everybody's optimist," he said.

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