BP, Shell seal largest exploration deals in Nova Scotia
By CADC Admin ~ November 19th, 2012. Filed under: UnderwaterINDUSTRY.
Fresh from pleading guilty to criminal misconduct in the Gulf Coast and paying US$4.5-billion in penalties, BP said it successfully bid for four deepwater exploration blocks offshore Nova Scotia and committed to spend $1.05-billion in the hopes of discovering oil in the Atlantic.
The Canada-Nova Scotia Offshore Petroleum Board said that BP was the successful bidder for four blocks, covering almost 14,000 square kilometres and located approximately 300 kilometres off the Nova Scotia coast.
“This award gives us access to a significant piece of geology, one of the most promising new deepwater areas to be licensed in recent years,” said Mike Daly, BP Executive Vice President of Exploration in a statement. “Exploration is a key driver of future growth for BP, and access to prospective new acreage such as this is essential. This entry to Nova Scotia’s offshore plays to our strengths in the deepwater and sub-salt.”
Shell Canada also secured exploration rights to four parcels for its $32-million bid.
The board plans to issue exploration licences in January pending final Ministerial approval by federal and federal and provincial governments.
“These represent the largest total bid amounts in response to a Call for Bids in Nova Scotia’s offshore area and for Atlantic Canada,” CNSOPB Chief Executive Officer Stuart Pinks said. “It is important for our community to know that before any exploration activity can take place on these licences, operators must demonstrate to the Board’s satisfaction that such activities will be conducted in a manner which holds the health and safety of offshore workers and the protection of the offshore environment paramount.”
Shell had also won four parcels for $970-million in the first round of bidding earlier in the year.
The CNSOPB plans to begin the next biddding round in December.
With file from Reuters
Yadullah Hussain | Nov 16, 2012 11:50 AM ET – Financial Post.
