Wood Group received the first project work authorization under a recently signed multiuse agreement with Suncor Energy, for work to be completed at its Firebag in-situ site in Alberta, Canada, approximately 120 kilometres northeast of Ft. McMurray.
The work will be completed using Wood Group’s standard well pad design, that was developed in response to growing concerns about escalating cost for in-situ heavy oil facilities, especially steam-assisted gravity drainage (SAGD) well pads, and uses the same design-one, build-many approach Wood Group has applied to other heavy oil and offshore facilities.
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. 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.
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