EnCana Taps SBM Offshore for Deep Panuke Work

SBM Offshore has received a Letter of Agreement (LOA) from EnCana for the provision, leasing and the operation of a production facility for EnCana's Deep Panuke natural gas project offshore Nova Scotia. The field is located in a harsh environment approximately 175 kilometers off the coast in 44 meters of water. Under the LOA, SBM will start detailed engineering and procurement activities to target first gas from Deep Panuke in late 2010.

In addition to the leasing and the operation of the production facility, SBM will also provide field-wide logistics and operations under the contract. The term of the contract will be for a minimum period of eight years with annual extension provisions to a maximum of twelve additional years.

The Deep Panuke Production Field Center (PFC) will produce market-ready gas exported through a subsea pipeline to customers in Canada and the northeastern United States. It will be the third application of the SBM Offshore MOPU/MOPUstor technology and proves again the cost effectiveness of this concept in a broad field of applications, this time in the extreme weather environment of the North Atlantic.