Chevron Canada Awarded Exploration License in Flemish Pass Basin
Chevron Canada reaffirmed its commitment to achieving future growth in Atlantic Canada after posting a winning bid on an offshore block in the latest land sale held by the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB).
The C-NLOPB on Nov. 12 awarded Chevron an exploration license for NL 15-01-02, a 274,000-hectare parcel in the Flemish Pass Basin. Chevron is the operator on the block with a 35 percent interest, while Statoil Canada has 35 percent and BG International has 30 percent.
Chevron was awarded an exploration license for NL 15-01-02, a 274,000-hectare parcel in the Flemish Pass Basin.
Chevron was awarded the parcel based on a $43-million work commitment. The pace of implementation of the work commitment is being evaluated.
“We continue to be optimistic about the future of the Flemish Pass Basin, and our successful bid demonstrates our ongoing commitment to further exploration in the region,” said Stan Franklin, Exploration manager for Chevron Canada.
Significant Industry Attention
Chevron already has an interest in two exploration licenses in the Flemish Pass Basin that were acquired in 2012 – EL 1125 and EL 1126. Statoil is the operator of the blocks with a 50 percent interest, Chevron has 40 percent and BG has 10 percent. The first exploration well on EL 1126 (Fitzroya A-12) will spud before the end of 2015.
The Flemish Pass Basin continues to attract significant industry attention. In the most recent land sale, seven parcels attracted a total of $1.2 billion in work commitments.
Statoil submitted the highest work bid at $423 million for a 100 percent interest in a 139,477-hectare parcel adjacent to the Bay du Nord discovery. The Bay du Nord discovery drilled by Statoil and Husky in 2013, along with nearby discoveries at Mizzen in 2009 and Harpoon in 2013, triggered a wave of industry activity.
“Chevron is well positioned in the heart of the trend offsetting the Statoil discoveries,” said Franklin. “The new exploration block offers additional prospectivity and follow-on opportunities.”