Wood Group revealed Tuesday that it has received authorization to conduct cost-saving well pad design work at the Firebag in-situ site in Alberta, Canada, as part of a recently signed agreement with Suncor Energy.
The work will be completed using Wood Group’s standard well pad design, which was developed in response to growing concerns about escalating cost for in-situ heavy oil facilities, especially steam-assisted gravity drainage (SAGD) well pads.
It is estimated that over the life of a SAGD project, two-thirds of all capital spending is on well pads and gathering line infrastructure, according to Wood Group. Suncor’s well pad facilities costs, which previously ranged from more than C$4 million to C$9 million per well pair, are now approximately C$2 million per well pair using the Wood Group design.
The design delivers cost savings by eliminating much of the owner’s costs associated with engineering, procurement and project management. The proven design accommodates pad sizes of up to 12 well pairs and uses a drilling pattern with the production and steam injection wells in two parallel rows, with wells drilled at 32-feet spacings.
“Our standard well pad design provides heavy oil producers the opportunity to lower costs and increase profit margins, and offers a new design solution for heavy oil production,” said Wood Group Chief Executive Robin Watson.
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