Several oil and gas majors put in their bids worth more than US$907 million ($1.2 million CAD) for a chance to explore about 2.6 million hectares of the Canada-Newfoundland and Labrador offshore area, according to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB).
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Map from C-NLOPB. |
The C-NLOPB received seven successful bids out of 11 parcel, located in the eastern Newfoundland region, north of the Jeanne d'Arc basin in the Grand Banks. Overall, 13 bids were submitted, and nine companies participated.
The clear winner was Statoil subsidiary Statoil Canada, who won six parcels as either and individual company, or as part of a joint venture.
At 139,477 hectares, NL15-01-09 was the most expensive parcel at $318.6 million ($423.2 million CAD), which went to Statoil Canada.
The largest parcel, NL15-01-02, at 274,732 hectares went to the joint venture consisting of Chevron Canada (35%) Statoil Canada (35%), and BG International (30%), with a winning bid of $32.5 million ($43.2 million CAD).
The joint venture of Statoil Canada, ExxonMobil Canada, and BP Canada Energy Group won two parcels. At a winning bid of $169.5 million ($225.2 million CAD), the JV landed parcel NL15-01-06 at an area of 262,230 hectares. Statoil has 34% interest, with ExxonMobil and BP each holding 33% each. The trio also won the 254,321-hectare parcel NL15-01-07 for $155.3 million ($206.3 million CAD).
Statoil Canada teamed up with JV partners ExxonMobil Canada and BG International to win parcel NL15-01-05 at 267,403 hectares for $8.3 million ($11 million CAD).
Statoil Canada also went in with JV partner BP Canada Energy Group to win parcel NL15-01-08 at an area of 268,755 hectares for $26.5 million ($35 million CAD).
Nexen Energy won NL15-01-10 as an independent. The company won the 163,008-hectare parcel for $196.5 million ($261 million CAD).
The four parcels that did not receive successful bids include NL15-01-01, NL15-01-03, NL15-01-04, and NL15-01-11.
According to the C-NLOPB, the sole criterion for selecting a winning bid is the total amount of money the bidder commits to spend on exploration of the parcel during Period I (the first period of a nine-year license). The minimum bid for each parcel offered is $10,000,000 CAD in work commitments. In addition, subject to the bidders satisfying the requirements specified in Call for Bids NL15-01EN and upon receiving Ministerial approval, the board will issue exploration licenses to the successful bidders in January 2016.
Earlier today (12 November), the Canada-Nova Scotia Offshore Petroleum Board received successful bids from Statoil Canada to invest nearly US$61.7 million (CAD $82 million) to explore two properties, which were also part of the board's 2015 call for bids.
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