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

  • Car sales set records in November
  • Canada adopts ISO 20022 international electronic payment standard
  • Thunder Bay wind farm gets government approval
  • Moon Race 2: Nasa plans moon lander for 2024; Orion Spacecraft already complete
  • Cement industry opposes wood construction in taller buildings
  • Powering the Future through Protonic Ceramic Fuel Cells?
  • Consumer spending drives strong GDP growth in second quarter
  • Avalon Advanced Materials creates jobs to make lithium ion batteries from Kenora-area mine
  • Canada's start-ups need more help to become global players: OCC
  • Five defence industry technologies — right out of science fiction — that are real today
  • Japanese claim breakthrough in hydrogen storage technology
  • Canadian Solar to supply solar mega-projects in Ontario and Turkey
  • Canadian Solar to build London plant with Samsung
  • Scientists Use Machine Learning to Automate Atomic-Scale Manufacturing
  • Aerospace industry poised for growth: report
  • Waste-reduction law puts responsibility for products' end-of-life costs on manufacturers
  • Canada one of the world’s most energy-intensive countries: 15 percent energy reduction possible through lighting, computer and HVAC retrofitting: Conference Board of Canada Report
  • Amazon brings 800 high tech jobs to Ontario including engineers, programmers and developers
  • News of extra jobs tempered by caution in Ontario auto sector
  • 3D printing, or additive manufacturing, becoming more mainstream across many manufacturing sectors
Scroll to Top