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Companies reach agreement on Atlantic, Beaufort oil projects

Published by Steve Coleman on January 12, 2012

Three companies have reached an agreement to look for oil in deep water off the Newfoundland coast and the Beaufort Sea.

Chevron Canada Limited, Statoil Canada Ltd. and Repsol E&P Canada Ltd. announced Jan. 12 that they've finalized plans to look for offshore oil in Atlantic Canada. Chevron and Statoil have also agreed to work together to look for oil in the Beaufort Sea.

"These agreements significantly strengthen our exploration position in Atlantic Canada and in the Beaufort Sea and reaffirm our commitment to achieving long-term growth in Canada," said Chevron Canada President Jeff Lehrmann in a news release. "We look forward to working with Statoil and Repsol to achieve exploration success in these highly prospective basins."

The three oil companies have secured the rights to more than one million hectares in the Orphan Basin and Flemish Pass Basin. The largest will be the Orphan Basin project where the exploration licence gives the three companies rights to 604,000 hectares off the coast of Newfoundland and Labrador.

The companies have also secured two more parcels in the Flemish Pass Basin east of St. John's NL in water depths ranging from 700-2,600 metres One parcel covers 247,016 ha. The other spans 186,780 ha.

Chevron and Statoil also reached an agreement and a 60/40 split on a 2,060 square kilometre piece of the Beaufort Sea about 120 km offshore in 800-1,800 m of water. The two companies plan to work together as early as this summer to conduct a 3D seismic mapping project of the sea floor and any oil reserves that may be under it.

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