Oil companies preparing contingency plan as Whiffen Head terminal remains offline

Contingency plans for the transportation of crude oil from Newfoundland's offshore are being put in place as operations at a transshipment terminal in Placentia Bay remain offline following a tanker collision with a jetty.

One option includes ship-to-ship transfers in Placentia Bay, said a spokesperson for Basin Wide Transportation and Transshipment System (BWTTS), which co-ordinates crude transportation on behalf of the companies with ownership stakes in the offshore.

"BWTTS participants are continuing to monitor the incident investigation … to understand any implications for their operations, and put contingency plans in place to support offshore production," the spokesperson wrote in a statement to CBC News.

On Jan. 22, the Bahamas-flagged shuttle tanker Altera Thule struck the jetty at the Newfoundland Transshipment Limited terminal in Whiffen Head, near Arnold's Cove.

The jetty was damaged, but there were no injuries, and no pollutants were spilled into the ocean.

It's not clear whether the vessel sustained any damage, but Transport Canada confirmed to CBC News on Thursday that a inspection of the vessel is underway to ensure its compliance with regulations under the Canada Shipping Act.

The Whiffen Head terminal has been in operation since 1998, and is the transshipment point for crude from the Hibernia, Hebron, Terra Nova and White Rose oil fields.

There are two jetties at the terminal, and six tanks capable of storing up to three million barrels of crude.

Newfoundland Transshipment president Paul Durdle confirmed Thursday that operations at the terminal remain suspended as inspections continue, and a plan for repairing the damage is formalized.

Durdle said the company is using drones and remotely operated vehicles to carry out inspections, and an engineering company has also been hired to develop a repair plan.

Durdle did not respond to questions about the amount of time it might take to get the terminal back into operation.

A company called Altera operates a fleet of tankers, including the Thule, that shuttles crude from the offshore to the transshipment terminal.

Other tankers arrive at Whiffen Head to collect the crude and transport it elsewhere for refining, making Whiffen Head a critical asset for delivering Newfoundland crude to international markets.

So in order to avoid any bottlenecks, the BWTTS spokesperson said ship-to-ship transfers, which must receive Transport Canada approval, is an option.

"Ship-to-ship transfers involve the transfer of fluids from one vessel to another while at sea. It is a proven method of transfer, which has been used safely here and around the world," the BWTTS spokesperson said.

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