Resource assessments of the 2015 license round area for offshore Newfoundland and Labrador shows the potential to hold 12 billion bbl and 113 Tcf of gas in place, according to the Government of Newfoundland and Labrador, Nalcor Energy and Beicip-Franlab.
Image from Nalco.
The resource assessment, carried out by global leading firm Beicep Franlab, is based on new geoscience data covering the 11 parcels on offer in the Flemish Pass, a joint statement said.
The assessment covered about 1.6% or 24, 000sq km of Newfoundland and Labrador’s offshore area, an area that covers more than 1.5 million sq km.
The government will begin to carry out resource assessments on future license round areas, and will release the information to the industry prior to the license round bid closing.
2015 marks the first call for bids for offshore Newfoundland and Labrador under the Scheduled Land Tenure Regime.
By the end of this year, over 100,000km of 2D multi-client seismic data will be acquired and made available.
“As a government, we have taken a leadership role in developing our resources for the benefit of the people of this province. Through this information, we know more about our resource potential than we ever have before,” said the Honorable Paul Davis, Premier of Newfoundland and Labrador. “For the first time, detailed oil and gas resource numbers will be released in advance of a license round closing, providing a fair and level playing field for the global industry prior to bidding in the license rounds.”
“If you consider Hibernia – our largest oil and gas discovery that started Newfoundland and Labrador’s oil and gas industry – at 12 billion bbl of 'in place' oil potential we will have several more Hibernia-sized developments in an area covering a very small percentage of our offshore,” said Ed Martin, Nalcor Energy CEO and president. “We are seeing similar prospectivity in other areas - it is safe to say offshore Newfoundland and Labrador is poised for tremendous growth.”
Newfoundland and Labrador’s 2014 exploration licensing round resulted in a US$559 million bid led by ExxonMobil – the largest bid in the province’s history for a single parcel.
In September, BG Group acquired three non-operated positions offshore Newfoundland from Repsol, giving the company access to early stage exploration in a proven prospective basin ahead of the first well being drilled later this year.