Natural Resources
November 18, 2008

Offshore Land Sale Attracts New and Existing Players

The most recent land sale offered by the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has attracted a new global player to the province�s offshore and continues to attract strong interest from existing players.

"These are serious bids by established exploration and producing companies interested in exploring the Jeanne d�Arc Basin and Central Ridge/Flemish Pass and it shows industry�s continued interest in our offshore region," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "We are delighted with the results and we will continue our ongoing efforts to market Newfoundland and Labrador�s offshore in major oil and gas centres around the world."

The C-NLOPB announced the results of the 2008 Call for Bids in two offshore areas (NL08-1 and NL08-2) Monday. Successful bids were received on all five parcels � three in the Central Ridge/Flemish Pass and two in the Jeanne d�Arc Basin � with a total expenditure commitment of $129.9 million. The bid on one of the parcels in the Jeanne d�Arc Basin represents a significant dollar per hectare ($4,215) � a total of $81.9 million for 19,430 hectares.

The new player in the Newfoundland and Labrador offshore area is Repsol Exploracion, S.A., a subsidiary of Repsol YPF S.A., an integrated international oil and gas company based in Spain.

"We continue to build our offshore with new and existing players participating. The $129.9 million put forward is proof that industry continues to see our basins as prospective," said Minister Dunderdale. "The bids from operators already working in our offshore goes to show they have confidence in the prospectivity of these basins and are prepared to invest their exploration dollars here even in the midst of today�s challenging economic climate. Attracting a new player is further proof that we have the fundamentals in place for new players to diversify their portfolios."

The C-NLOPB released the following results of the land sale yesterday:

Flemish Pass

Parcel 1 (138,200 ha)

 

Husky Oil Operations Limited 40 per cent
Petro-Canada 40 per cent
Repsol Exploracion, S.A. 20 per cent
$18,600,000
Parcel 2 (134, 227 ha)

 

Husky Oil Operations Limited 67 per cent
Repsol Exploracion, S.A. 33 per cent
$1,188,000
Parcel 3 (55,954 ha)

 

StatoilHydro Canada Ltd. 65 per cent
Husky Oil Operations Limited 35 per cent
$18,724,000
Subtotal: 328,381 hectares                                                         Subtotal: $38,512,000

Jeanne d�Arc

Parcel 1 (19,430 ha) Petro-Canada 50 per cent
StatoilHydro Canda Ltd. 50 per cent
$81,900,000
Parcel 2 (121,348 ha)

 

Husky Oil Operations Limited 67 per cent
Repsol Exploracion, S.A. 33 per cent
$9,480,000
Subtotal: 140,778 hectares                                                         Subtotal: $91,380,000
Total: 469,159 hectares                                                                   Total: $129,892,000

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

2008 11 18                                                     1:55 p.m.


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