Standard Well Pad Design saves Suncor 50% of Well pad Costs

Wood Group received the first project work authorization under a recently signed multiuse agreement with Suncor Energy (SU), 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. The design 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 successfully 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.

The design delivers cost savings by eliminating much of the owner's costs associated with engineering, procurement and project management. The proven design accommodates pad sizes of up to 12 well pairs and uses a drilling pattern with the production and steam injection wells in two parallel rows, with wells drilled at 10 metre spacing.

Robin Watson, chief executive of Wood Group, stated: "Our standard well pad design provides heavy oil producers the opportunity to lower costs and increase profit margins, and offers a new design solution for heavy oil production."