The production was shut in due to excess of water in its natural gas reservoir.
In the 1Q 2015 results published on May 12, 2015, Encana President and CEO, Douglas James Suttles, said that Encana went to a seasonal operating strategy in order to maximize the value of the assets.
Encana is planning to resume production as the winter approaches and demand for natural gas rises.
Offshore Energy Today reached out to Encana Corporation and Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) seeking confirmation and further info on the Deep Panuke shut down.
The spokesperson for CNSOPB confirmed the shut down and added: “Encana Corporation has decided to operate Deep Panuke seasonally, and the CNSOPB has approved this change until Q4 2015.”
We are yet to receive a response from Encana.
The platform began production in 2013 and is anticipated to continue for a mean production life of 13 years.
Encana’s Deep Panuke project produces and processes natural gas from the Deep Panuke field, approximately 250 kilometres (155 miles) southeast of Halifax, Nova Scotia on the Scotian Shelf.
Natural gas from Deep Panuke is processed offshore and transported, via subsea pipeline, to Goldboro, Nova Scotia for further transport to market via the Maritimes & Northeast Pipeline.
Update: May 15, 2015; 17:48 CET
In an e-mail sent to Offshore Energy Today, Encana’s spokesperson said: “In recent quarterly results calls with analysts Encana has discussed water in the Deep Panuke wells being earlier than anticipated. To optimize the value of the asset, Encana adopted a seasonal production strategy for Deep Panuke.”
The spokesperson further explained that “following a very good first quarter in 2015, we are shutdown and plan to resume production as we approach the winter season of higher demand for natural gas”.
Offshore Energy Today Staff