A program aimed at undertaking abandonment and reclamation work on inactive wells, facilities and flowlines is working smoothly.
A release from the Saskatchewan government on Tuesday says $34 million worth of work packages have been approved on the “Accelerated Site Closure Program” since it was launched in May with the first projects being approved in July.
“Saskatchewan-based service companies were among the hardest-hit sectors by COVID-19 and the OPEC+ price war, and it was crucial to get those workers—who form the backbone of the oil and gas sector—back on the job,” Energy and Resources Minister Bronwyn Eyre said. “We are proud of the ASCP program, which has rolled out smoothly and efficiently, and very pleased that workers across the province are being employed by local oilfield service companies.”
“The Saskatchewan ASCP funding has made the difference from having six people employed to now having 25 people employed to undertake this work, which has tripled our company’s manhours since the funding came into place,” Prairie Dog Reclamation and Fencing owner and operator Jeff Loehndorf said. “I am so appreciative of the work this funding has generated in this province as it will go a long way to sustaining my business.”
There are currently 11 operators and over 100 service companies involved in the approved work packages, which are evenly distributed across all four major oil-producing regions of the province. Approximately $4.4 million in work has been completed to date, including 172 well abandonments, 312 well reclamations, 41 facility decommissions, and 38 flowline abandonments.
Up to 8,000 inactive wells and facilities are expected to be abandoned and reclaimed over the life of the program, which is expected to support some 2,100 full-time equivalent jobs.