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Chevron to go ahead with Kaybob Duvernay shale development program in Canada

EBR Staff Writer Published 07 November 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, Pambina 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.

Pambina 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% operated interest in approximately 330,000 acres in the Duvernay formation near Fox Creek, approximately 260km northwest of Edmonton.


Image: Chevron headquarters in San Ramon, California, US. Photo: courtesy of Coolcaesar/Wikipedia.