The Transocean Barents semi-submersible drill rig is pictured just lately within the Newfoundland offshore. The rig has made two oil discoveries whereas underneath contract to Equinor, and its associate, BP Canada. (Equinor)
The worst-kept secret in Newfoundland and Labrador‘s oil business has been confirmed: an exploration drilling marketing campaign this summer season within the Flemish Cross Basin has resulted in new discoveries.
The outcomes will seemingly increase hopes about the way forward for the Bay du Nord mission, which was deferred in March due to the worldwide COVID-19 pandemic and collapsing oil markets.
However Equinor just isn’t making any commitments.
“It’s too early to touch upon any potential affect of the invention on the standing of the deferred Bay du Nord growth mission,” an Equinor official wrote in a press release to CBC Information.
“Equinor continues to evaluate the potential of Bay du Nord growth mission and the higher Flemish Cross Basin.”
Equinor issued a information launch Thursday acknowledging that wells drilled at prospects often known as Cappahayden and Cambriol had been profitable, however that it is too early to offer particular data on volumes.
“We’re happy to have made two discoveries offshore Newfoundland,” Paul McCafferty, Equinor’s senior vice-president for worldwide offshore exploration, is quoted as saying within the launch.
Equinor has confirmed it has made two extra oil discoveries within the Flemish Cross Basin. Exploration wells at prospects often known as Cappahayden and Cambriol ”have confirmed the presence of hydrocarbons,” in line with the corporate. (Equinor)
Equinor declined an interview request.
Wells had been drilled in deep waters
The wells had been drilled by the Transocean Barents, a rig often known as a harsh surroundings, ultra-deepwater semi-submersible.
The rig arrived at Bay Bulls this week, and is presently demobilizing earlier than crossing the Atlantic Ocean for Norway in early November.
Equinor is a 60 per cent associate within the two prospects, with BP Canada proudly owning 40 per cent.
The wells are positioned 500 kilometres east of St. John’s. The Cappahayden properly has a water depth of about 1,000 metres, whereas Cambriol has a depth of 600 metres.
Equinor says it additionally drilled what’s often known as a “top-hole” at one other prospect often known as Sitka.
When requested if additional exploration will probably be carried out subsequent 12 months, the spokesperson wrote: “Equinor is presently evaluating subsequent steps associated to potential future actions within the Flemish Cross Basin.”
The discoveries come at a time of disaster for the Newfoundland offshore, which has been hit arduous by the mix of a worldwide pandemic, and weak and unsure oil markets.
Equinor introduced in March that it was deferring Bay du Nord with a view to discover methods of constructing the mission viable in an period of low oil costs.
3 different discoveries made in space
The mission grew out of three earlier discoveries often known as Bay du Nord, Bay de Verde and Baccalieu, with an estimated 300 million barrels of recoverable oil.
Equinor is partnered with Husky Power on Bay du Nord, which provides a brand new wrinkle to the mission, since Husky is being bought in an all-stock deal by rival Cenovus.
Husky didn’t reply to a query about the way forward for its curiosity in the Bay du Nord mission.
In keeping with Equinor’s web site, an funding choice on Bay du Nord may very well be made in 2021, with first oil to be produced in 2025 utilizing a floating, manufacturing, storage and offloading vessel just like the Terra Nova FPSO and the SeaRose FPSO.
The Cappahayden and Cambriol discoveries are shut sufficient to the Bay du Nord subject to be linked by what’s often known as a subsea drill centre to an FPSO, so insiders say this might enhance the economics of the general mission.
If authorised, a growth within the Flemish Cross Basin can be the primary deepwater oil producing subject in offshore Newfoundland, and the primary outdoors the legacy Jeanne d’Arc Basin, the place the Hibernia, Terra Nova, White Rose and Hebron fields are positioned.