CALGARY, Sept. 5, 2017 /CNW/ - Secure Energy Services
Inc. ("Secure" or the "Corporation") (TSX – SES) is pleased to
announce further growth of its midstream infrastructure through the
construction of a light oil feeder pipeline system and receipt
terminal in the Kindersley-Kerrobert region of Saskatchewan. Developed over two phases, this
system will gather crude oil from multiple oil producers and
transport the product to a newly constructed, Secure owned and
operated terminal and tankage. From the terminal, the product will
be delivered onto the Enbridge mainline at Kerrobert, SK.
All provincial regulatory and permitting requirements for the
terminal have been achieved and engineering is complete with major
equipment ordered.
Phase 1 – Pipeline
Currently under construction, the gathering pipeline system is
an eight inch diameter line stretching approximately
10 kilometres, terminating at Secure's existing Kindersley
Full Service Terminal. The construction of this gathering pipeline
is currently 50% complete.
Additional facilities will be tied in to this gathering line by
way of small diameter, lateral pipelines. Each location will have a
Lease Automatic Custody Transfer unit to facilitate measurement and
quality control.
Phase 2 – Terminal & Pipeline
Phase 2 of the project includes a new terminal to be constructed
southeast of Kerrobert which will
include all infrastructure required for connection onto the
Enbridge mainline. Initial site preparation and development has
commenced.
Construction of a ten inch diameter pipeline stretching 27
kilometres is expected to begin by mid-October. This pipeline will
initiate at a pump station that will be constructed adjacent to
Secure's existing Kindersley Full Service Terminal and will
terminate at the new Secure Kerrobert Terminal.
Strategic Rationale
As part of the Corporation's long-term growth strategy, Secure
is expanding its midstream infrastructure by adding transportation
and commercial related opportunities in an effort to provide
additional services to its customers. The project supports our
customers with ongoing operations in the Kindersley area of Saskatchewan.
Secure is pursuing the development of this greenfield project as
a strategic partnership with key Viking light oil producers.
Connection to the Enbridge mainline at Kerrobert as the downstream carrier will
provide shippers access to eastern Canada and export markets.
This project is a direct result of our customer focused approach
of providing value-added services.
"In our experience, we have seen the need for an enhanced
business relationship between producers and midstream companies.
Secure is creating value for our customers around transparent
opportunities where both the producer and Secure participate in the
risk and can share in the benefits of midstream assets," said
Rene Amirault, Secure's Chief
Executive Officer.
The feeder pipeline project includes area dedication and
contracted volume on both an annual and cumulative term basis over
10 years. The total project cost is estimated to be approximately
$75 million. It is anticipated Secure will incur approximately
$50 million in capital costs in 2017,
with the remainder in 2018. The pipeline is expected to be
operational in the fourth quarter of 2018.
"We appreciate this significant investment made by Secure Energy
Services in the Province of Saskatchewan," said Energy and Resources
Minister Nancy Heppner. "This
infrastructure expansion shows continued strength and resilience of
the oil and gas sector."
The growth and development of Secure's transportation and
commercial business will increase cashflow, increase asset value
and contribute to the Canadian transportation system of oil and gas
production. Safe, reliable, efficient and sustainable operations is
a priority for Secure on the Kerrobert Light Oil Pipeline.
Synergistic to existing Secure divisions, the transportation and
commercial business captures production based revenue from the oil
and gas industry.
ABOUT SECURE ENERGY SERVICES INC.
Secure is a TSX publicly traded energy infrastructure and
services company that provides safe, innovative, efficient and
environmentally responsible management of fluids and solids
solutions to the oil and gas industry in Western Canada and certain regions in
the United States ("U.S."). The
Corporation operates three divisions:
Processing, Recovery and Disposal Division ("PRD"): The PRD
division owns and operates midstream infrastructure including
facilities and pipelines providing processing, storing, shipping
and marketing of crude oil, oilfield waste disposal and recycling.
The PRD division services include clean oil terminalling, rail
transloading, pipeline transportation, crude oil marketing, custom
treating of crude oil, produced and waste water disposal, oilfield
waste processing, landfill disposal, and oil purchase/resale
service. Secure currently operates a network of facilities
throughout Western Canada and in
North Dakota, providing these
services at its full service terminals ("FST"), landfills,
stand-alone water disposal facilities ("SWD") and full service rail
facilities ("FSR").
Drilling and Production Services Division ("DPS"): The DPS
division provides equipment and product solutions for drilling,
completion and production operations for oil and gas producers in
Western Canada. Drilling services
focuses on providing products and systems that are designed for
more complex wells, such as medium to deep wells, horizontal wells
and horizontal wells drilled into the oil sands. Production
services focuses on providing equipment and chemical solutions that
optimize production, provide flow assurance and maintain the
integrity of production assets.
Onsite Services Division ("OS"): The OS division provides
services that include pipeline integrity services (inspection,
excavation, repair, replacement and rehabilitation), demolition and
decommissioning, reclamation and remediation of former wellsites,
facilities, industrial properties, and environmental construction
projects (landfills, containment ponds, subsurface containment
walls, etc.); Integrated Fluid Solutions ("IFS") which include
water management, recycling, pumping and storage solutions; and
Environmental services which provide pre-drilling assessment
planning, drilling waste management, remediation and reclamation
assessment services, Naturally Occurring Radioactive Material
("NORM") management, waste container services, and emergency
response services.
SOURCE SECURE Energy Services Inc.