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Production curtailed at Hibernia, Hebron due to weather, shuttle tanker shortage
Production curtailed at Hibernia, Hebron due to weather, shuttle tanker shortage

CBC

time18-02-2025

  • Business
  • CBC

Production curtailed at Hibernia, Hebron due to weather, shuttle tanker shortage

ExxonMobil Canada has reduced oil production at the Hibernia and Hebron platforms in offshore Newfoundland and Labrador, blaming a shortage of shuttle tankers and harsh weather for the interruption. The company is not offering any further details. It's the latest fallout from a Jan. 22 incident in Placentia Bay when the 300-metre long shuttle tanker Altera Thule — filled with crude oil — slammed into the wharf at the Whiffen Head transshipment terminal, significantly damaging one of the two jetties that allow ships to load and offload their bulk cargos. Now, there's a perfect storm of challenging weather conditions, fewer shuttle tankers, a transshipment terminal that's operating at half-capacity, and three producing oilfields with onboard storage capacity that is quickly filling up. The Thule is one of four tankers owned by U.K.-based Altera Infrastructure that shuttles crude from the offshore on behalf of Basin Wide Transportation and Transshipment System (BWTTS), a joint venture of oil companies with ownership interests in the offshore. The crude is stored in large tanks until it can be collected by a second tanker and shipped to the market for refining. The Thule has a gash in its bow well above the waterline, described by a spokesperson for the shuttle tanker fleet as "minor," and is still anchored in Placentia Bay with its full load of crude. "The vessel will commence repairs at anchorage after is has offloaded its present cargo," Pat Adamson, on behalf of Altera, wrote in an email. He did not say how long the Thule will be out of service and where it will go for repairs, but said there are no plans to bring in a replacement vessel "at this time." The Thule is scheduled to offload at the Whiffen Head terminal later today, if the weather allows, said Paul Durdle, president of Newfoundland Transshipment Limited. As for the cause of the collision, Adamson said the investigation is ongoing. ExxonMobil offering few details ExxonMobil is the lead owner and operates the Hebron project, and is lead owner of the Hibernia field, which is operated by a joint venture called Hibernia Management and Development Company Limited. When asked about the extent of the effect on production in the two fields, ExxonMobil Canada spokesperson Shelley Sullivan wrote in a statement that "it is not our practice to discuss specifics of operations at our facilities." There were nearly 7.5 million barrels of oil produced at the Hibernia, Hebron and the Suncor-operated Terra Nova fields in the Jeanne d'Arc Basin in December, or an average of nearly 250,000 barrels per day. Suncor has not yet commented on the status of operations aboard the Terra Nova FPSO, which has been producing in the offshore since 2002. The Cenovus Energy operated SeaRose FPSO, meanwhile, has not produced oil in the White Rose field since early 2024, and is "mobilizing to field," according to a report last week on the offshore regulator's website. Terminal shut down for 22 days The incident at Whiffen Head forced operations at the transshipment terminal to be suspended for 22 days while the wharf and related infrastructure was inspected, which disrupted a critical link in the movement of crude oil from the offshore. As a Plan B, ship-to-ship transfers are underway in Placentia Bay involving shuttle and second leg tankers, but this can only be safety done in favourable weather conditions, which has been rare in recent days. Five ship-to-ship transfers have taken place, and a sixth is underway, said Durdle. On Thursday, one of the two jetties — which was undamaged during the collision — reopened to shuttle and second leg tankers, but it's becoming clear that a bottleneck has formed. Just one second leg tanker has loaded a cargo of crude since Thursday, and no shuttle tankers have offloaded at the terminal since the Jan. 22 incident. Last year, there were 90 cargos offloaded at the Whiffen Head terminal by shuttle tankers, delivering more than 76 million barrels of crude. "Safety is the primary consideration for all activities. All tanker operations — whether at the terminal, ship-to-ship and at the offshore fields — take place under strict conditions, including weather limits," said McConnell.

Whiffen Head terminal reopens as oil companies consider adding tanker capacity in the offshore
Whiffen Head terminal reopens as oil companies consider adding tanker capacity in the offshore

CBC

time13-02-2025

  • Business
  • CBC

Whiffen Head terminal reopens as oil companies consider adding tanker capacity in the offshore

Social Sharing The transshipment terminal in eastern Newfoundland that serves as a critical storage facility for offshore oil resumed limited operations Thursday following an incident three weeks ago that involved a vessel laden with crude slamming into the wharf. A tanker called the MT Minerva Coralia docked at the terminal around 8 a.m. Thursday in order to load up with crude from the Whiffen Head tank farm for delivery to the market. Deliveries from the regular fleet of offshore shuttle tankers will also resume. The Coralia was the first vessel to approach the terminal since the afternoon of Jan. 22, when a shuttle tanker called the Altera Thule crashed into one of the two jetties at Whiffen Head, opening a gash in the vessel's bow, crumpling a section of the wharf's concrete decking, and nearly toppling the mechanical loading arm that connects tankers to the cargo terminal. There were no injuries, and the doubled-hulled Thule did not spill any crude into the bay. There are multiple investigations ongoing into the incident. The terminal at Whiffen Head is operated by Newfoundland Transshipment Limited (NTL). President Paul Durdle confirmed in a statement to the media that inspections and repair planning are continuing on the wharf damaged by the Thule. He would not say how long the wharf might be out of commission. He added that inspections determined a second wharf was undamaged, and could be reopened. "The team will conduct additional surveillance during start-up to provide extra monitoring of the operations," Durdle wrote. Oil companies not taking chances Despite the development, there are also signs that oil companies are taking no chances on a potential interruption in the flow of crude into Placentia Bay from Newfoundland and Labrador's offshore. A spokesperson for Basin Wide Transportation and Transshipment System (BWTTS) wrote in a statement to CBC News on Thursday that additional ships may be required, and an application has been made under the Coasting Trade Act for an increase in the fleet of shuttle tankers. "While no final decisions have been made, beginning the process now provides BWTTS participants with this contingency as an option." BWTTS co-ordinates crude transportation on behalf of the oil companies with ownership stakes in the offshore. There are three Altera-owned shuttle tankers in the regular fleet, plus the Altera Thule, which was added to the fleet for the winter season. BWTTS could bring in another vessel, the spokesperson explained, or extend the contract of the Altera Thule once it is repaired. "We continue to work closely with NTL and Altera to understand the longer-term implications, and ensure appropriate contingency plans are in place to support offshore production." The shuttle tankers collect oil produced at the Hibernia, Hebron, Terra Nova and White Rose oil fields — roughly 250,000 barrels per day — and deliver it to Whiffen Head for storage in a tank farm capable of handling three million barrels. Hibernia, for example, can store roughly 1.3 million barrels of oil inside its concrete gravity structure. Last year, the fleet delivered more than 90 cargos of offshore crude to the transshipment terminal. Without access to the Whiffen Head terminal, shuttle tankers have been offloading their crude directly into what's called second leg tankers in Placentia Bay. These ship-to-ship transfers are "a proven method of transfer, which has been used safely here and around the world," the BWTTS spokesperson stated. Up to Thursday, there were five ship-to-ship transfers.

Photos reveal extent of damage to Whiffen Head oil terminal, tanker following collision
Photos reveal extent of damage to Whiffen Head oil terminal, tanker following collision

Yahoo

time07-02-2025

  • General
  • Yahoo

Photos reveal extent of damage to Whiffen Head oil terminal, tanker following collision

Photos obtained by CBC News reveal the extent of the damage to an important oil terminal near Arnold's Cove — and the potential for life-threatening injury or environmental disaster — after a nearly 300-metre tanker laden with crude collided with the dock last month. The incident has forced oil companies to conduct ship-to-ship transfers in Placentia Bay in order to get Newfoundland and Labrador crude to the market, and it's not clear how long this contingency plan will be in place. The collision also punctured a hole in the bow section of the Altera Thule, one of a small fleet of shuttle tankers that transports crude from producing oil fields in the offshore to the transshipment terminal at Whiffen Head. The Thule was pulling alongside the jetty at mid-afternoon on Jan. 22 to offload a cargo of crude from the offshore when the collision occurred. The impact crumpled a section of the dock's concrete decking, and the mechanical loading arm that connects tankers to the cargo terminal was also knocked askew and badly damaged. It's not known if the operator's cab on the loading arm was occupied during the collision, but the company that operates the terminal, Newfoundland Transshipment Limited, said there were no injuries. The Thule is double-hulled and no pollutants were spilled into the ocean, but a photo obtained by CBC reveals a deep gash in the bow of the vessel. A spokesperson for the company that operates the ship, Altera, said an investigation is ongoing and "these investigations do take considerable time." It's compulsory that ships entering Placentia Bay have a licensed maritime pilot on board who has specific knowledge of the bay. This is an image of the damaged bow section of the oil tanker Altera Thule, which collided with the dock at the Whiffen Head transshipment terminal in Placentia Bay on Jan. 22. (Submitted) Transport Canada is investigating to determine whether the vessel meets the applicable regulations under the Canada Shipping Act, the agency wrote in a statement on Wednesday. "Should Transport Canada identify incidents of non-compliance, appropriate action will be taken," the Transport Canada statement reads. Energy Minister Andrew Parsons said in a statement that his department is monitoring the situation. "Assessments are continuing and stakeholders are collectively working various contingency options," he said. Preparing a repair plan Operations at the terminal have been suspended as engineers develop a repair plan, and Newfoundland Transshipment is not saying how long the terminal will be out of commission, the estimated cost of repairs, or how much crude is currently stranded in storage at the Whiffen Head tank farm. "We are continuing with our assessment and repair planning. This work takes time and our focus is to ensure the safety of the site and personnel, as we undertake these activities," Newfoundland Transshipment Limited's Paul Durdle wrote in a statement to CBC News on Thursday. The Altera Thule is one of a small fleet of shuttle tankers that transports oil produced in Newfoundland and Labrador's offshore. (N.L. Maritime/Facebook) The terminal is a critical asset in the province's oil industry. Ships like the Thule, known as Suezmax vessels, collect crude from the Hibernia, Hebron, Terra Nova and White Rose fields and deliver it to the transshipment terminal, where it's held in six tanks capable of holding up to three million barrels of crude. Second leg tankers known as Aframax vessels then transport the crude to customers in the United States and other international locations for refining into various fuels. The intent of the terminal, which opened in the late 1990s, is to provide oil companies with more efficient transportation to the market, and to provide greater flexibility in the marketing of that oil. With operations suspended at the terminal, and roughly 250,000 barrels being produced each day in the offshore, oil companies have been forced to use ship-to-ship transfers in order to get their valuable products to market and ensure production is not interrupted. The Hibernia platform in Newfoundland and Labrador's offshore produced first-oil on Nov. 17, 1997. It's one of four producing oil fields in the Jeanne d'Arc Basin, located roughly 340 kilometres southeast of St. John's. It can store roughly 1.3 million barrels of oil inside its concrete gravity structure. (ExxonMobil Canada) A spokesperson for the oil companies said two ship-to-ship transfers have so far taken place, and more are planned. "Safety is a primary consideration during all activities, and we are working with Teekay Marine Services to manage the ship-to-ship transfers, including any weather limits that need to be considered," said a spokesperson for Basin Wide Transportation and Transshipment System (BWTTS), which co-ordinates crude transportation on behalf of the companies with ownership stakes in the offshore. WATCH | No word on how much it will cost to repair the damage at Whiffen Head: The Altera spokesperson said ship-to-ship transfers are safe, with roughly 11,000 such transfers taking place each year around the world. As for the Altera Thule, it's scheduled to offload its crude later this month, and will then undergo repairs. Hibernia and Hebron are fixed platforms built atop massive concrete structures that sit on the ocean floor. They can each store more than one million barrels of crude store. The Terra Nova and White Rose fields use ship-like production vessels that can store less than one million barrels. Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.

Photos reveal extent of damage to Whiffen Head oil terminal, tanker following collision
Photos reveal extent of damage to Whiffen Head oil terminal, tanker following collision

CBC

time07-02-2025

  • General
  • CBC

Photos reveal extent of damage to Whiffen Head oil terminal, tanker following collision

Photos obtained by CBC News reveal the extent of the damage to an important oil terminal near Arnold's Cove — and the potential for life-threatening injury or environmental disaster — after a nearly 300-metre tanker laden with crude collided with the dock last month. The incident has forced oil companies to conduct ship-to-ship transfers in Placentia Bay in order to get Newfoundland and Labrador crude to the market, and it's not clear how long this contingency plan will be in place. The collision also punctured a hole in the bow section of the Altera Thule, one of a small fleet of shuttle tankers that transports crude from producing oil fields in the offshore to the transshipment terminal at Whiffen Head. The Thule was pulling alongside the jetty at mid-afternoon on Jan. 22 to offload a cargo of crude from the offshore when the collision occurred. The impact crumpled a section of the dock's concrete decking, and the mechanical loading arm that connects tankers to the cargo terminal was also knocked askew and badly damaged. It's not known if the operator's cab on the loading arm was occupied during the collision, but the company that operates the terminal, Newfoundland Transshipment Limited, said there were no injuries. The Thule is double-hulled and no pollutants were spilled into the ocean, but a photo obtained by CBC reveals a deep gash in the bow of the vessel. A spokesperson for the company that operates the ship, Altera, said an investigation is ongoing and "these investigations do take considerable time." It's compulsory that ships entering Placentia Bay have a licensed maritime pilot on board who has specific knowledge of the bay. Transport Canada is investigating to determine whether the vessel meets the applicable regulations under the Canada Shipping Act, the agency wrote in a statement on Wednesday. "Should Transport Canada identify incidents of non-compliance, appropriate action will be taken," the Transport Canada statement reads. Energy Minister Andrew Parsons said in a statement that his department is monitoring the situation. "Assessments are continuing and stakeholders are collectively working various contingency options," he said. Preparing a repair plan Operations at the terminal have been suspended as engineers develop a repair plan, and Newfoundland Transshipment is not saying how long the terminal will be out of commission, the estimated cost of repairs, or how much crude is currently stranded in storage at the Whiffen Head tank farm. "We are continuing with our assessment and repair planning. This work takes time and our focus is to ensure the safety of the site and personnel, as we undertake these activities," Newfoundland Transshipment Limited's Paul Durdle wrote in a statement to CBC News on Thursday. The terminal is a critical asset in the province's oil industry. Ships like the Thule, known as Suezmax vessels, collect crude from the Hibernia, Hebron, Terra Nova and White Rose fields and deliver it to the transshipment terminal, where it's held in six tanks capable of holding up to three million barrels of crude. Second leg tankers known as Aframax vessels then transport the crude to customers in the United States and other international locations for refining into various fuels. The intent of the terminal, which opened in the late 1990s, is to provide oil companies with more efficient transportation to the market, and to provide greater flexibility in the marketing of that oil. With operations suspended at the terminal, and roughly 250,000 barrels being produced each day in the offshore, oil companies have been forced to use ship-to-ship transfers in order to get their valuable products to market and ensure production is not interrupted. A spokesperson for the oil companies said two ship-to-ship transfers have so far taken place, and more are planned. "Safety is a primary consideration during all activities, and we are working with Teekay Marine Services to manage the ship-to-ship transfers, including any weather limits that need to be considered," said a spokesperson for Basin Wide Transportation and Transshipment System (BWTTS), which co-ordinates crude transportation on behalf of the companies with ownership stakes in the offshore. The Altera spokesperson said ship-to-ship transfers are safe, with roughly 11,000 such transfers taking place each year around the world. As for the Altera Thule, it's scheduled to offload its crude later this month, and will then undergo repairs. Hibernia and Hebron are fixed platforms built atop massive concrete structures that sit on the ocean floor. They can each store more than one million barrels of crude store. The Terra Nova and White Rose fields use ship-like production vessels that can store less than one million barrels.

Oil companies preparing contingency plan as Whiffen Head terminal remains offline
Oil companies preparing contingency plan as Whiffen Head terminal remains offline

CBC

time30-01-2025

  • Business
  • CBC

Oil companies preparing contingency plan as Whiffen Head terminal remains offline

Contingency plans for the transportation of crude oil from Newfoundland's offshore are being put in place as operations at a transshipment terminal in Placentia Bay remain offline following a tanker collision with a jetty. One option includes ship-to-ship transfers in Placentia Bay, said a spokesperson for Basin Wide Transportation and Transshipment System (BWTTS), which co-ordinates crude transportation on behalf of the companies with ownership stakes in the offshore. "BWTTS participants are continuing to monitor the incident investigation … to understand any implications for their operations, and put contingency plans in place to support offshore production," the spokesperson wrote in a statement to CBC News. On Jan. 22, the Bahamas-flagged shuttle tanker Altera Thule struck the jetty at the Newfoundland Transshipment Limited terminal in Whiffen Head, near Arnold's Cove. The jetty was damaged, but there were no injuries, and no pollutants were spilled into the ocean. It's not clear whether the vessel sustained any damage, but Transport Canada confirmed to CBC News on Thursday that a inspection of the vessel is underway to ensure its compliance with regulations under the Canada Shipping Act. The Whiffen Head terminal has been in operation since 1998, and is the transshipment point for crude from the Hibernia, Hebron, Terra Nova and White Rose oil fields. There are two jetties at the terminal, and six tanks capable of storing up to three million barrels of crude. Newfoundland Transshipment president Paul Durdle confirmed Thursday that operations at the terminal remain suspended as inspections continue, and a plan for repairing the damage is formalized. Durdle said the company is using drones and remotely operated vehicles to carry out inspections, and an engineering company has also been hired to develop a repair plan. Durdle did not respond to questions about the amount of time it might take to get the terminal back into operation. A company called Teekay Marine Solutions operates a fleet of tankers, including the Thule, that shuttles crude from the offshore to the transshipment terminal. Other tankers arrive at Whiffen Head to collect the crude and transport it elsewhere for refining, making Whiffen Head a critical asset for delivering Newfoundland crude to international markets. So in order to avoid any bottlenecks, the BWTTS spokesperson said ship-to-ship transfers, which must receive Transport Canada approval, is an option. "Ship-to-ship transfers involve the transfer of fluids from one vessel to another while at sea. It is a proven method of transfer, which has been used safely here and around the world," the BWTTS spokesperson said.

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