Natural Resources
December 30, 2010
Exploration Opportunities Buoyed by Signing of Agreement
The signing of a new three-year rig-sharing
agreement between three operators in Newfoundland and Labrador's
oil and gas industry highlights the significant opportunities
for exploratory drilling and development in the province's
offshore. Husky Energy, Statoil Canada and Suncor Energy have
all reached an agreement with drilling contractor TransOcean for
the use of the Henry Goodrich semi-submersible drilling unit.
"I congratulate these three companies for
pursuing such cooperative avenues to ensure ongoing exploration
activity in the province's offshore," said the Honourable Shawn
Skinner, Minister of Natural Resources. "By their very nature,
rig-sharing agreements encourage increased partnerships and
cooperation between companies involved in the oil and gas
industry while supporting continued exploration, a crucial step
to finding new discoveries."
Rig-sharing agreements enable oil operators to
pursue exploration drilling and development programs that
without such an arrangement may prove too costly to be
commercially viable. The prior agreement signed between these
three companies successfully led to the drilling of the
Ballicatters well on the Grand Banks by Suncor Energy, Statoil
Canada's Mizzen discovery in the Flemish Pass Basin and
exploratory drilling on the Glenwood well in the Jeanne d'Arc
Basin by Husky Energy.
Known as the Rig Share 2 Agreement, the
agreement was signed on April 27, 2010, but just recently came
into effect. With this new agreement in place, operator Suncor
Energy has started drilling a second exploration well,
Ballicatters M-96Z and Husky Energy is pursuing further
development opportunities. In addition, Statoil Canada plans to
drill a delineation well for the Significant Discovery Licence
received from the Canada-Newfoundland and Labrador Offshore
Petroleum Board for the Mizzen discovery and an exploration well
in the southern Grand Banks.
"Exciting exploration activity is happening
throughout our province's prospective offshore and onshore
regions," added Minister Skinner. "Existing and new industry
players are demonstrating a keen interest in the undiscovered
potential within our basins. This activity signals a very bright
and sustainable future for Newfoundland and Labrador's oil and
gas industry, along with further economic growth and prosperity
for our province."
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