There’s a new basin offshore Newfoundland following a land sale to oil companies which closed yesterday.
In total, eight parcels of land were awarded out of a possible 16. The work committed could amount to about $750-million to drill wells over the next six years.
Industry consultant Rob Strong says British Petroleum Canada came out the big winner with a 50 per cent stake in four of the bids. He also says a new basin has been created.
It’s further out than the Flemish Pass in deep water. He says it’s very encouraging to see a company like BP interested in the deep water area.
Noia President Bob Cadigan says they welcome record-breaking land sale results in the province’s offshore.
Cadigan says it’s very good news and shows a lot of faith in offshore potential.
He says everyone knows the industry is in a downturn, and international investment in exploration is down, but despite that, they’ve seen three quarters of a billion dollars in investment, which says a lot about our prospectivity.