First Year of Inactive Well Program off to Great Start

$184 Million To More Than 500 Saskatchewan Companies For Work On Inactive Oil And Gas Sites

Saskatchewan’s Accelerated Site Closure Program (ASCP) has seen strong uptake and success during its first year.

The ASCP provides funding to Saskatchewan-based oil and gas service companies to conduct abandonment (clean-up) and reclamation work of inactive oil and gas well sites across the province. Launched in May, 2020, the ASCP will provide up to $400 million in federal government funding over two years through the COVID-19 Economic Response Plan.

As of April 30, 2021, $184 million in contracts has been issued to companies to engage Saskatchewan-based service workers in site closure work. More than $61 million has been paid for work already completed under the program, including 1,385 well abandonments and decommissions, 237 flowline abandonments, 13 facilities, and 2,545 site remediation and reclamation activities.

Regionally, the funding disbursed in work package contracts in oil and gas producing regions of the province includes:

• Estevan: $59,513,766
• Swift Current: $36,714,611
• Kindersley: $27,863,467
• Lloydminster: $60,579,289

The ASCP, which is overseen by the Ministry of Energy and Resources and delivered in partnership with the Saskatchewan Research Council, was developed to support Saskatchewan oil and gas sector workers.  It has been very well received by both oil and gas companies and the service sector as well-timed, efficient and administratively simple.

For further information, please visit www.saskatchewan.ca/Business/Agriculture-Natural-Resources-and-Industry/Oil-and-Gas/Accelerated-Site-Closure-Program or https://src.nu/wells.