C-NLOPB proposes annual eastern Newfoundland bid rounds

March 27, 2023
Invites feedback on Hebron development.

Offshore staff

ST JOHN’S, Canada – The Canada‐Newfoundland and Labrador Offshore Petroleum Board (C‐NLOPB) is amending its Scheduled Land Tenure System related to future Calls for Bids in the Eastern Newfoundland Region.

Starting this year, the C-NLOPB may issue an annual Call for Bids for cumulative parcels (those not awarded in previous offers or lapsed exploration licenses) in the Eastern Newfoundland Region annually, subject to ministerial approval.

The current, two-year cycle for new lands offered in the region in potential future Calls for Bids will remain unchanged, with the next cycle scheduled to start in 2024.

C-NLOPB has also invited comments by the end of this week (March 31) concerning ExxonMobil’s application for an amendment to the offshore Hebron field Jeanne d’Arc Formation development.

The company is seeking to develop sands in the formation not currently covered in the approved Hebron Development Plan authorization.

It aims to follow the same approach as for the original Hebron project development, including use of existing facilities and drill well slots, recovery methods and systems. The development could represent up to around 5% of the ultimate recovery at Hebron.

The JDA Formation is the deepest reservoir at Hebron and is Kimmeridgian to Tithonian in age. The area proposed for development is directly below the Hebron Platform and includes the Hebron Horst Block and various small fault blocks to the east and south where reservoir is juxtaposed against reservoir.

While the original base depletion plan scenario called for 38 wells, the Hebron platform was built with 52 drill slots. The new scenario considers development of 50 producer/injector wells and one cuttings reinjection well), of which the JDA plan would contribute four oil producers and two water injectors.

It follows experience from Hebron pools 1, 2, 4H, 4B and 5.

The displacement strategy for the JDA Formation sands includes secondary recovery by waterflood, with further strategies potentially tested to optimize reservoir performance as new information becomes available. The proposed depletion plan could recover around 43 MMbbl from the JDA Formation sands from the six additional wells, using existing facilities.

Finally, C-NLOPB has issued a Notice of NonCompliance related to an incident on the Hibernia platform last month, following a report conducted by operator Hibernia Management and Development Company (HMDC).

A person on the platform is said to have been injured while performing work on a portable extension ladder 2.5-3 m above the floor when the ladder fell to the deck. The injured worker had to undergo medical treatment.