Sunday, October 4th13.7°C

Statoil says exploration drilling to begin off Newfoundland in summer

ST. JOHN'S, N.L. - Norwegian energy firm Statoil says it will begin exploration drilling off Newfoundland later this year in an effort to determine whether to develop an offshore oilfield believed to hold up to 600 million barrels of recoverable crude.

The company said Friday that the drilling will likely take place between July and September and span 18 months in the Flemish Pass Basin.

Statoil announced last fall that it had discovered a reservoir of light crude believed to hold between 300 million and 600 million barrels of recoverable oil while drilling in an area known as the Bay du Nord prospect, about 500 kilometres northeast of St. John's.

It was the third find in the Flemish Pass Basin in the North Atlantic and was described as the 12th largest oil discovery in the world in the past four years.

Geir Richardsen, vice-president of exploration for Statoil Canada, said the drilling program this year should help determine a more precise volume of the reservoir.

"It's a great day for us," he said. "We're embarking on a long-term operation because we believe in the area and we have great hopes for the future."

He said they will also undertake a seismic project in the area in late May or early June that involves a 1,900 square-kilometre area.

Richardsen said the area around Bay du Nord is about 1,100 metres deep, making it deeper than other sites like White Rose, Hibernia and Terra Nova which are about 100 metres down.

So far no details have been released on how much the company will spend on the drill program or on how many jobs it will create. Richardsen said the company typically has about 500 people working on a project at the outset, but he didn't know how many would be involved long-term.

Provincial Natural Resources Minister Derrick Dalley said the announcement marked a significant step for the province's petroleum industry.

"Bay du Nord is one of the largest conventional oilfields to be discovered in offshore Canada, and a program such as this one in a high activity frontier area will help to build on the momentum in terms of exploration and appraisal activity," he said in a statement.

The Canadian Press

Read more Business News


Recent Trending

Today's Market
S&P TSX13339.74+97.85
S&P CDNX525.56-0.33
S&P 5001951.36+27.54
CDN Dollar0.7605+0.0003
Natural Gas2.466+0.033

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.19+0.01
Metalex Ventures0.06+0.00
Russel Metals21.48-0.07
Copper Mountain Mining0.42+0.03
Colorado Resources0.08+0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.49+0.45
Diamcor Mining0.90+0.02


2298536351 Hillside Avenue
4 bedrooms 4 baths
more details
Click here to feature your property
Please wait... loading

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

Collateral mortgage

Photo: Thinkstock.comMost of the time I recommend that my clients not take a collateral type mortgage product, as it locks you in with the current lender and at maturity the mortgage is costly to tran...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council