Chevron Canada Limited, Statoil Canada Ltd. and Repsol E&P Canada Ltd. have concluded agreements to conduct exploration activities offshore Atlantic Canada. These new joint ventures over large blocks in deep water represent important strategic steps for all three companies.
The specifics of the joint venture agreements are as follows:
Orphan Basin. In a farm-out arrangement, Repsol and Statoil will be participants in a planned 2012 Orphan Basin exploration well, offshore Newfoundland and Labrador (NL) on Exploration Licence 1074R (604,000 hectares). Chevron will be the operator with 65% equity interest. Repsol will have 20% and Statoil will have 15%.
Flemish Pass Basin. Chevron, Statoil and Repsol were recently named the successful bidders on two exploration parcels in the Flemish Pass Basin, offshore NL. The successful bids were for Parcel NL 11-02-01 (247,016 hectares) and NL 11-02-02 (186,780 hectares). The land parcels are located approximately 400 kilometers (249 miles) east of St. John’s, NL, in water depths ranging from 700 to 2,600 meters (2,297 to 8,530 feet).
Statoil will be the operator with 50% equity interest. Chevron has 40% and Repsol has 10%.
Beaufort Sea. In a farm-out arrangement, Statoil will participate with Chevron in a Beaufort Sea 3-D seismic program, tentatively scheduled for summer 2012. The proposed seismic program would comprise a 3-D survey of EL 460, a 2,060 square kilometer block located 120 kilometers (75 miles) offshore in water depths ranging from 800 to 1,800 meters (2,625 to 5,906 feet). Chevron will be the operator with 60% equity interest; Statoil will have 40%.