Statoil and Husky Energy find “significant” oil offshore Newfoundland

Statoil Canada says its exploration well located in the Bay du Nord northeast of St. John’s Newfoundland is a “high impact discovery.” The company, working with Husky Energy, confirmed that it has discovered between 300 and 600 million barrels of oil recoverable in total at three sites in the Flemish Pass Basin. There are additional “prospective resources” that require further exploration. The Bay du Nord discovery is the third for Statoil in the Flemish Pass Basin, approximately 500 kilometres northeast of St. John’s. The other two are Mizzen and Harpoon. Together, the three discoveries are being described as “significant.” The discoveries are all in approximately 1,100 metres of water.

Statoil-Newfoundland-oil-Hushy-Energy-EDIWeekly

According to a Statoil statement, the oil found is light, with an API 34 (American Petroleum Institute) rating. It is described as having high porosity and high permeability. The lighter crude will yield more components such as natural gas and naphtha in the distillation process, and is more suitable for producing gasoline, compared to crude with a lower API rating.

Tim Dodson, executive vice president of Statoil Exploration, said that the discovery “brings us one step closer to becoming a producing operator in the area.” More work is required, he said, as the company has drilled only a “few well” in an area of 8,500 square kilometres. “This will involve new seismic as well as additional exploration and appraisal drilling to confirm these estimates before the partnership can decide on an optimal development solution in this frontier basin.”

Statoil has called this its biggest oil discovery ever, outside of Norway, and a milestone in its development as an international company. The provincial government of Newfoundland has also been quick to laud the discovery. The province’s natural resources minister, Tom Marshall, called the discovery a “game changer” for Newfoundland and Labrador, where the offshore oil industry already accounts for one-third of the province’s GDP. However, it is unlikely that production will begin any time soon.

Statoil has a 65 per cent interest in the three Newfoundland discoveries, Mizzen, Harpoon and Bay du Nord. Its partner Husky Energy of Calgary has a 35 per cent interest.

“High impact,” a company release explains, means 100–250 mmboe (million barrels of oil equivalent).

Did you miss this?

Other Popular Stories

  • Company tries to stop U.S. cleanup effort on longest oil spill in history claiming it will "lead to a bigger environmental catastrophe"
  • Offshore wind costs will fall significantly if development continues: study
  • Ontario missing out on $billions from federal government: study
  • Siemens Canada, Manitoba Hydro sign $800 million contract
  • Honda to spend $492 million on Alliston plant upgrades
  • 7 Award winners honoured for championing ontario's environment's zero-waste, low-carbon initiatives
  • Fiat Chrysler denies wrongdoing as EPA accuses it of emissions cheating
  • Avalon Advanced Materials creates jobs to make lithium ion batteries from Kenora-area mine
  • Promise of more investment in auto industry but no specifics
  • Drivers want hydrogen-fueled cars says Hyundai
  • Resource-based provinces lead in wage gains
  • Bombardier has to delay CSeries first test flight again
  • Auto Sales Down Again for Big Car Makers
  • Higher efficiency solar cells within reach
  • Lower Model 3 prices can't prevent Tesla's slide by 3% after deliveries fail to impress; Tesla opens orders to Europe and China
  • Financial services fastest growing industry in Canada for exports: Conference Board of Canada
  • Cars with “Nerves”? Self diagnostics and magnetostrictive material may deliver cars with feeling.
  • Pump and compressor makers feeling the oil crunch
  • Space X Mars plans become feasible: Elon Musk's multi-planet species goal may yet launch
  • ​Toyota highlights experimental technologies with artificial intelligence that recognizes driving habits and facial expressions
Scroll to Top