Deep Panuke, Nova Scotia
Deep Panuke is an offshore natural gas field. It is located 250km off the coast of Nova Scotia, Canada on the Scotian Shelf. The field commenced production in late 2013 and peak monthly production was 248 million cubic meters from four subsea wells in January 2014. The production was reduced to seasonal (winter months only) in the fall of 2015, with monthly production declining to 79 million cubic metres by February 2016.
The EPC contractor retained Systech to assist with contract management during the latter 12 months of the project at a point where the EPC contractor was strenuously pushing the Owner to achieve acceptance status so to allow the platform to go “on-hire”. Systech was appointed to address the contractual issues affecting the critical final acceptance close out of the project and to sweep up all outstanding legacy change orders. Given the extent of the delays on the project, the parties had entered into litigation proceedings and relationships were strained. Systech assisted in focusing the parties’ attentions on the remaining obligations and scope and toward achieving the earliest possible, compliant acceptance.
Due to the improved relationships forged through this approach, the project was successfully signed off and placed on hire, and the parties were eventually able to settle on the litigation out of court.
Sector Energy, Oil, Gas and Petrochemical
Service Contract Management, Dispute Resolution