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Copyright of Shell Canada CARMON CREEK PROJECT 1 October 2014 PEACE RIVER, TOWN COUNCIL Bob Blachford, Peace River Operations Manager Jenna Strachan, Peace.

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Presentation on theme: "Copyright of Shell Canada CARMON CREEK PROJECT 1 October 2014 PEACE RIVER, TOWN COUNCIL Bob Blachford, Peace River Operations Manager Jenna Strachan, Peace."— Presentation transcript:

1 Copyright of Shell Canada CARMON CREEK PROJECT 1 October 2014 PEACE RIVER, TOWN COUNCIL Bob Blachford, Peace River Operations Manager Jenna Strachan, Peace River Community Liaison Officer

2 Copyright of Shell Canada AGENDA 1. Carmon Creek Project Overview 2. Construction Update 3. Transportation Logistics Plan 4. BlueSky Lodge 5. Local Benefits (Business Opportunities/Employment Opportunities) 6. Social Investment 7. Q&A 2

3 Copyright of Shell Canada CONSTRUCTION SCHEDULE 3 October 2014 20142015201320162017 FID 2018 CPF CONSTRUCTION WELL PAD CONSTRUCTION DRILLING & COMPLETIONS WELL PAD PREPARATION 1 st OIL 1600 to 2,000 Workers* on site during peak construction (2015/2016 - peak) Phase 1 comp opens * based on best estimates

4 Copyright of Shell Canada4 CONSTRUCTION UPDATE Confidential  Site rough grading complete, Piling Co-gen ahead of plan, ACM bldg complete  Co-gen 1 foundations starting  Generators completed and shipped to site  Co-gen Piling 1 & 2 complete by end September  Campsite ring road completed, all other road programs on plan  Phase 1A of camp opened (280 beds), first occupants August 5  Phase 1B operational November 23  Carmon Creek development wells to spud in October 2014

5 Copyright of Shell Canada TRANSPORTING MODULES  To reduce traffic on roads, rails is the primary transportation method  Modules have been designed to fit on rail cars – transported to the region by the existing rail line to the DMI pulp mill site  Shell partnered with DMI to expand their existing rail facilities at their site to allow offloading of modules  Modules will then be transported via highway 986 to site  Modules too large to be transported by rail will be trucked to site via two heavy load corridors as designated by Alberta Transportation  East Route: coming from the east on 986 – suited for high wide/overweight loads  West Route: via highway 2 to highway 688 and travelling east on 986 – avoids the town of Peace River. 5

6 Copyright of Shell Canada TRANSPORTATION LOGISTICS PLAN  Shell’s transportation plans covers the safe movement of:  Vessels, modules & materials to the Carmon Creek site  Workers to/from the construction site  As is common in the construction of heavy oil projects, major parts of the project will be built at module fabrication sites. Pre-built modules will be moved to the region by rail and truck.  Modules will be transported to the region primarily by rail by those highways designated by Alberta Transportation as heavy load highways.  Non-local workers will be flown to the region via major hubs  All workers (local and non-local) will bussed to the site – no personal private vehicles will be allowed at the camp or construction site. 6

7 Copyright of Shell Canada MODULE ROUTES – RAIL & ROAD 7

8 Copyright of Shell Canada HIGH LOAD CORRIDORS Province of Alberta High/Load Corridors, for modules 120 X 24 X 24 High/Load Corridors within the Province of Alberta are subject to the following restrictions as determined by Alberta Transportation  Maximum loaded height of 9.2M (29’ 6”)  Maximum allowable weight during each of the five shipping seasons  Legislation dictates routes  Restricted by overhead power lines  Restrictions by bridge capacities 8

9 Copyright of Shell Canada MODULE TRANSPORTATION - SAFETY Meet Alberta Transportation permit requirements which outlines measures carriers must take to maximize safety on roads - permit requirements will vary depending on the load and influences: Speeds Frequency of pullouts Vehicle escorts required in certain cases Only use Shell safety-approved carriers: Rigorous vetting process (high standard of driver qualifications and experience prior to being allowed to operate on behalf of Shell) In-vehicle monitoring systems (monitor for speed, erratic driving etc.) Carriers use well-established protocols (Alberta 511) to communicate movements with impacted communities. Additional safety measures - timing of moves (i.e. avoids peak bus/shift rotations & school bus times) 9

10 Copyright of Shell Canada BLUESKY LODGE  The BlueSky lodge is operated and serviced through a joint venture with ATCO and Woodland Cree First Nation  The construction camp has been designed to be as self-sufficient as possible to minimize strains/impacts on local infrastructure and to provide a safe, secure and comfortable environment for non-local workers (onsite health clinic; fenced camp with security; workers bussed daily to the worksite; recreational facilities; rooms have private washrooms with showers, high speed internet, 32 inch -tv etc) 10

11 Copyright of Shell Canada BUSINESS OPPORTUNITIES  The project will assess potential opportunities for local businesses over the construction period – through Shell directly and through subcontracting with our on-site contractors  There will be ongoing opportunities form ongoing operations, drilling well pad and infrastructure construction over the 35+ life of the project  Some of the local business and contractors supporting the project to date are: Acklands- Grainger Inc., Bison Contracting, ClearStream Energy Services, DFI Corp, First Student Canada, Freson Brothers IGA, Grimshaw Gravel Sales Limited, Kit Office Plus, MacMillan Construction Ltd, MDP Oil field Services Ltd, Belle Petroleum Centre, Northsite Contractors Ltd, Rt Grading & Roadbuilding, Sawridge Inns Ltd, Western Canadian Mulching Ltd.) 11

12 Copyright of Shell Canada EMPLOYMENT OPPORTUNITIES  The project requires between 1600 to 2000 workers during peak construction periods (2015/2016)  The number of full-time employees and contractors needed to operate both the Carmon Creek and existing Cliffdale production facilities is estimated to be about 500 (250 employees; 250 contractors)  After Carmon Creek starts up the existing Peace River Complex will be decommissioned and production integrated into the new Carmon Creek facilities 12

13 Copyright of Shell Canada  Since 2012, Shell has invested almost $2 million to support initiatives in the Peace River area  Shell employees have volunteered over 4800 hours with more than 30 local organizations including schools and sports teams. 13 SOCIAL INVESTMENT

14 Copyright of Shell Canada LOCAL INITIATIVES AND ENGAGEMENT  External engagements and stakeholder feedback – help to shape Shell’s communication, engagement, and investment activities  Ongoing engagement opportunities at the Community Office - employment, contracting, grants, information  Multi-Stakeholder Committees, Subcommittees, Workshops  Road Safety Forum  Additional community sensing - Participation in Chamber of Commerce, Peace River Rotary and updates from PR Interagency, Community Survey  Next Open House – November 5 th, 2014 at McKinney Hall 14

15 Copyright of COMPANY NAME

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