EnerNorth Subsidiary Awarded White Rose Offshore Contract
EnerNorth's subsidiary, M&M Engineering Limited along with G. J. Cahill and Company Limited have been awarded a C$24.0 million fabrication contract for Husky Energy's White Rose Offshore Oil Project.
North Eastern Constructors Limited ("NECL") has been formed as a joint venture equal partnership of M&M and Cahill. NECL will utilize the Bull Arm Topsides Facilities, located at Trinity Bay Newfoundland & Labrador, to fabricate the M12- Main Electrical Room Module and the LER-Local Electrical Room Module. The Bull Arm Facility is a massive fabrication complex formerly housing the floating production storage and offloading platform for the Terra Nova Offshore Project as well as the gravity based offshore platform for the Hibernia Offshore Project. Work is expected to commence immediately and is scheduled for completion in 12 months creating an estimated 130,000 person hours of employment.
John Brake, Chairman of M&M stated: "This is an exciting contract for M&M Engineering Limited. It is a huge step forward in management's plan to increase M&M revenues and market share by increasing the bite size of contracts we transact. This is an ideal contract to raise the bar of our performance expertise as an Offshore Fabricator. We are pleased to add our skills to the proven expertise of G.J. Cahill and Company, Newfoundland's leading electrical contractor and our joint venture partner in NECL. The quality, skills and dedication standards of NECL combined with the capacity of the Bull Arm Facility ideally positions us for larger and additional contracts on future projects for Newfoundland's growing Oil Industry and we will keep the work here."
Discovered in 1984, the White Rose offshore oil field is located in the Jeanne d'Arc Basin 350km east of St. John's, Newfoundland and Labrador, Canada. The field consists of both oil and gas pools, including the South White Rose oil pool. The oil pool covers approximately 40km and contains an estimated 200-250 million barrels of recoverable oil. It is anticipated that the field will achieve first production by the end of 2005.