Eastern Newfoundland’s 2015 round draws $1.2 billion in potential bids

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) received 13 bids totaling $1,204,953,713 for its NL15-01EN, the first call for bids in the Eastern Newfoundland region under the scheduled land tenure system (OGJ Online, July 6, 2015). C-NLOBP offered 11 offshore parcels totaling more than 2.5 million hectares in the Flemish Pass basin. The 13 bids included 9 companies and 7 parcels were awarded during the license round.

Several companies were awarded sole operatorship for several blocks including NL15-01-09, on which Statoil ASA successfully bid more than $423 million for 100% interest. The block is adjacent the operator’s Mizzen discovery in 2009, and Harpoon and Bay du Nord discoveries in 2013 (OGJ Online, Sep. 26, 2013). Nexen Energy ULC was awarded 100% interest in Block NL15-01-10, located to the south of Statoil’s recent discoveries. According to C-NLOPB documents, the company bid $261 million for the parcel.

Block NL15-01-02 was awarded to partners Chevron Canada Ltd., Statoil Canada Ltd., and BG International Ltd. Chevron will lead as operator on the first block with 35% interest, with 35% and 30% interest to Statoil and BG, respectively.

On NL15-01-05, Statoil has an operating interest of 40%, with partners ExxonMobil Canada Ltd. 35%, and BG 30%.

Three additional Statoil operated blocks include NL15-01-06 with Statoil 34% as operator, ExxonMobil 33%, BP Canada Energy Group ULC 33%; NL15-01-07 with Statoil 34% as operator, ExxonMobil 33%, BP 33%; and NL15-01-08 with Statoil 50% and BP 50%.

C-NLOPB’s announcement included several parcels with unsuccessful bids: NL15-01-01, NL15-01-02, NL15-01-04, and NL15-01-04.

Statoil now holds an extensive position in Flemish Pass. In November 2014, Statoil undertook an 18-month exploration drilling program in the Flemish Pass to further appraise the Bay du Nord discovery and test new prospects in the great basin area. Husky Energy partners with Statoil with 35% interest in Bay du Nord.

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