Chevron Moves Forward with Kaybob Duvernay Shale Development Program in Alberta, Canada
Published: November 9, 2017 |
Chevron Canada, a unit of US-based Chevron, has announced its decision to move ahead with the development its leaseholdings in the Kaybob Duvernay area of west-central Alberta.
The initial development program, which follows completion of three-year appraisal program by Chevron, involves approximately 55,000 acres of Chevron’s operated position in the Duvernay resource in the area known as East Kaybob.
Chevron Canada President Jeff Gustavson said: “The Duvernay formation is one of the most prospective liquids-rich shale plays in North America.
“Chevron Canada looks forward to realizing the value of this resource from our industry-leading position while delivering economic benefits to local communities, Alberta and Canada.”
As part Chevron’s East Kaybob development, Pembina Pipeline has signed further agreements to invest C$290m for the construction and operation of the first tranche of infrastructure development in the liquids-rich Kaybob region of the Duvernay.
Under the terms of the deal, Pembina will be responsible for the construction of a raw product separation and water removal infrastructure; a condensate stabilization facility; a 100 million cubic feet per day gas processing facility; and a 10-inch condensate pipeline.
Pembina expects infrastructure to enter service in mid 2019, subject to regulatory and environmental approvals.
Earlier this year, Pembina Pipeline signed a 20-year infrastructure development and service agreement with Chevron Canada in the liquids-rich Kaybob region.
Pembina Gas Services Vice President Jaret Sprott said: “We are excited to further support the growth of the world-class Duvernay resource play and begin building out our first tranche of infrastructure requested under the previously announced Agreement with Chevron.”
Additionally, Chevron’s program will also utilize long-term infrastructure development and service agreement with Keyera.
Chevron owns 70 percent operated interest in approximately 330,000 acres in the Duvernay formation near Fox Creek, approximately 260km northwest of Edmonton.
Source: Energy Business Review
To stop by Chevron’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.