C-NLOPB details latest offshore Newfoundland bid round results

The Canada-Newfoundland and Labrador Offshore Petroleum Board has awarded new licenses to four companies under its latest Call for Bids round.

Offshore staff

ST JOHN’S, Newfoundland – The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has awarded new licenses to four companies under its latest Call for Bids round.

Total sums pledges for exploration spending during the initial period of the nine-year licenses amounted to a record $1,386,273,936, with an all-time high single successful bid of $621,021,200.

The awards were as follows:

2018 Call for Bids Results NL18-CFB01
(Exploration Licenses, Eastern Newfoundland Region)

Parcel

Hectares

Successful Bidders

Successful Bid Amount

Parcel 8

269,799

BHP Billiton Petroleum (New Ventures) Corporation (100%)

$621,021,200

Parcel 12

273,579

BHP Billiton Petroleum (New Ventures) Corporation (100%)

$201,021,200

Parcel 14

159,036

Equinor Canada (70%)
Husky Oil Operations (30%)

$32,231,981

Parcel 15

253,608

Equinor Canada (60%)
Suncor Energy Offshore Exploration
Partnership (40%)

$480,000,000

Total Successful Bid Amount

$1,334,274,381

2018 Call for Bids Results NL18-CFB02 (Exploration Licences, Jeanne d’Arc Region)

Parcel

Hectares

Successful Bidders

Successful Bid Amount

Parcel 1

142,448

Suncor Energy Offshore Exploration
Partnership (40%)
Husky Oil Operations (30%)
Equinor Canada (30%)

$51,999,555

Total Successful Bid Amount

$51,999,555

No bids were received for Call for Bids NL18-CFB03 covering production license in the Jeanne d’Arc Region.

Steve Pastor, President Operations Petroleum at BHP, commenting on the company’s two license awards in the Eastern Newfoundland region, said: “This frontier opportunity has large oil resource potential which we identified through our Global Petroleum Endowment Study in 2016 and is in a low risk country, with competitive fiscal terms.

“This opportunity delivers on our exploration focus in conventional petroleum and will leverage our global deepwater development and operational expertise.”

BHP’s aggregate bid of $625 million covers drilling and seismic work required over the initial six-year term. Its minimum commitment under the license agreements is for $157 million.

Should the company decide to progress exploration program beyond this initial phase, it will likely take a decision on drilling the first appraisal well is expected to be made in FY2022.

Its initial planned exploration capex for blocks 8 and 12 is $140 million up to FY2021.

Subject to satisfaction of conditions outlined by the Canada Newfoundland and Labrador Offshore Petroleum Board, all the license agreements should be ratified next month, coming into force from January 2019.

11/08/2018

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