BP and Husky Energy have been awarded acreage in the Jeanne d’Arc Basin offshore eastern Canada.
The two companies bid approximately US$11.8 million (CAD$15 million) for the first of three parcels of 784,329 acres (317,407 hectares) offered by the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) in its Call for Bids NL17-CFB01. Their bid was the only one submitted. Parcel 1 contains 300,116 acres (121,453 hectares).
The companies’ bid was accepted based on the total amount of exploration spending they planned during the first period of a nine-year license. The minimum acceptable bid for each parcel is $7.5 million (CAD $10 million) in work commitments.
C-NLOPB will award the new license to BP (50%) and Husky Oil (50%) in January 2018; subject to the bidder receiving Ministerial approvals.
In November last year, C-NLOPB awarded two parcels in the Jeanne d-Arc region to Husky at a total value of $181 million (CAD$244 million).