Spill Shuts Down Drilling Ops Offshore Canada

Published at 03:44PM - 18/07/16

The Canada-Newfoundland & Labrador Offshore Petroleum Board (CNLOB) announced today that the Canadian oil and gas company Husky Energy has reported a spill of hydraulic fluid into the environment last week.

On July 15, 2016, the company reported an authorised discharge which resulted in the impairment of safety critical equipment, offshore Canada.

“Approximately 1,800 litres of hydraulic fluid was released to the environment during drilling operations,” CNLOB reported.

Spill Shuts Down Drilling Ops Offshore Canada

The incident took place on the Henry Goodrich semi-submersible drilling rig, owned by Transocean.

“This release in fluid caused a rapid drop in pressure which immediately activated the Blowout Preventer (BOP). The BOP functioned as intended and secured the well,” the company informed in a statement.

There were no injuries associated with this incident, the well is secured and all drilling operations have been suspended.

The C-NLOPB is reviewing the incident and Husky Energy is continuing to investigate, the organisation explained.

The drilling rig arrived in Canada in April and is located approximately 200 miles east of St John’s.

Husky Forms Midstream Partnership

Also today, the Calgary-based company announced it closed a transaction for the creation of a new limited partnership named Husky Midstream Limited Partnership.

The partnership will assume the ownership of selected midstream assets in the Lloydminster region of Alberta and Saskatchewan.

Husky received US$1.7 billion (£1.28 billion) in cash proceeds from the transaction, which will be applied to strengthen its balance sheet.

The aim of the partnership is to facilitate the expansion of Husky’s heavy oil thermal business, as financing has been secured for investment in new infrastructure to expand takeaway capacity for at least eight new Lloyd thermal projects.

Husky will remain the operator of the assets, which include approximately 1,900 kilometres of pipeline, 4.1 million barrels of oil storage capacity and other ancillary assets, while retaining a 35% interest in the partnership, the company informed.