​Chevron pushes go on Duvernay development, Pembina announces $290 million in infrastructure

Image: Joey Podlubny/JWN

Chevron is moving ahead with commercial development on its Duvernay shale acreage, six years after commencing exploration activities in the play.

The company says the Duvernay — an early-stage liquids rich natural gas resource in west-central Alberta — is “considered one of the most promising shale opportunities on the continent.”

Chevron says the initial development will take place at East Kaybob, on about 55,000 of the 330,000-acre Duvernay position it shares with KUFPEC Canada Inc., a subsidiary of Kuwait Foreign Petroleum Exploration Company.

Chevron owns 70 percent of the partnership and is the operator, while KUFPEC holds the remaining 30 percent.

The program will utilize long-term infrastructure development and service agreements with Pembina Pipeline Corporation and Keyera Corporation, with service expected to be available during the second half of 2019, Chevron says.

Pembina also announced that it will construct and operate $290 million of Duvernay infrastructure under an agreement with Chevron.

This includes Duvernay II, a replica of Pembina’s existing Duvernay facility.

Chevron commenced an exploration program in the Duvernay in 2011, subsequently drilling 16 horizontal wells and completing 13 wells using multi-stage hydraulic fracturing, it says.

“In the second half of 2014, Chevron commenced a pad drilling program to evaluate well production rates and reservoir performance. Drilling continued during 2016 on an appraisal and land retention program. A total of 53 wells had been tied into production facilities by early 2017,” the company says.