Calgary, AB -January 6, 2022.
Seven leading energy sector organizations have formally announced a partnership to accelerate innovation of Steam-Assisted Gravity Drainage (SAGD) well pad design and execution through Western Canada. Pad-X Partnership is spearheaded by Scovan Engineering, a Calgary, AB based engineering firm to advanced energy sector projects. Scovan is joined by Strathcona Resources Ltd., Connacher Oil and Gas Ltd., Harvest Energy Corp., Spartan Controls, Gemini Fabrication, and Drishya AI as well as support from other SAGD producers.
The group’s mission is to collaboratively develop the next generation of standardized, sustainable and intelligent well pads as a response to the ever-changing energy landscape. The collective group recognizes that partnership is the key to success. With an increasing focus on environmental stewardship, cost competitiveness and a goal to reduce GHG’s, the group has come together to maximize their value as a collective and to be leaders in sustainable development for SAGD. The group recognizes that the most effective way to address increasing demands on oil producers is by developing and advancing a new design that will transform the oil sands through leadership and collaboration.
Other organizations have attempted to create industry alliances in the past, with similar goals to improve efficiency and safety within the industry through collaborative business practices. However, where those in the past have failed, this group is set up for success. Pad-X Partnership has three distinct advantages.
1. Timing. We are in unprecedented times where the oil and gas industry has faced the lowest commodity prices in history over the last year, and ever-increasing pressures to reduce green-house gas emissions.
2. Common Mindset. The group is truly an equal collective with the common goal being the main driver. This unique partnership is the driving force behind the accelerated pace of progress and meaningful results.
3. The Design. Scovan Engineering brings a proven Zero-Base design that has been the result of improvements and field-based iterations over the last 10 years. By starting with a modular, proven zero base design, the team is able to accelerate the process to create a templated design that can be used for various assets and oil sands reservoirs.
The Benefits
Pad-X Partnership is targeting a reduction in the capital cost of well pads by 50%. The design Includes a state-of-art automation system that uses AI/ML for self-optimalization and performance improvements.
They will drive a true manufacturing strategy that includes manufacturing modules on spec at a volume that drives productivity and reduces costs at a rate that has never been done before. This will also allow producers to reduce the time between committing to capital equipment and generating revenue. With modules available from inventory, overall project development and execution could be done in three months or less.
“Right now, we are at a critical point in history for the energy industry where we need to fundamentally change not only our design but our way of thinking of the way we approach our projects for the next ten years.” Comments Valerie Stewart, VP Strategy & Development, Scovan.
“Our vision is to drive a true manufacturing approach to projects. We can start not only reducing the footprint and GHGs associated with these projects but we can start making them faster and we can do that at a scale that hasn’t been seen yet in this industry. Our targets are to reduce the costs of our well pad projects by half.” Adds Donovan Nielsen, President, Scovan.
Pad-X Partnership will collaborate over the next several months on design, and manufacturing is slated to begin as early as Spring 2022. The design of the new well pad will be developed based on the five key pillars of flexibility, cost efficiency, operability, future-proof innovation and quality.
Al Grabas, Senior Manager, Facilities from Strathcona Resources had this to say of the initiative: “The PadX Partnership offers the ability to standardize well pad designs, allowing us to leverage engineering, fabrication, and supply chain efficiencies. This leads to reduced project costs and start to finish cycle times, while providing flexibility to accommodate future production methods. Throughout the partnership I’ve been encouraged by the collaboration of the participants, which has helped all of us on the path of continual improvement.”
About Scovan Engineering Inc.
Scovan provides engineering, procurement, and construction management services for the emerging energy industry. Scovan specializes in the design and execution of energy-related industrial facilities and offers innovation and experience to project developments. Scovan’s focus is to enable our clients to excel in the planning and implementation of their energy projects. Scovan is an expert in energy and has the track record to give their clients the confidence and certainty they need for their developments. Scovan is Forward Engineering. www.scovan.ca
For more information on Pad-X Partnership, please contact:
Valerie Stewart
VP Strategy & Development, Scovan
