QUICK LOOK: Offshore Newfoundland Mega Potential

Offshore Newfoundland and Labrador is predicted to be one of the world’s hot spots for exploration and production in the coming decade. With record-breaking land sales, new basin discoveries and unprecedented seismic offerings and showings, this region is destined for success.

The latest entrant to the offshore scene in Newfoundland is BHP Petroleum division. Steve Pastor, BHP President Operations Petroleum said the successful bids offshore Newfoundland are an exciting opportunity for BHP to explore for world-class conventional oil assets as an early mover in this prospective region. He envisions, “This frontier opportunity has large oil resource potential which we identified through our Global Petroleum Endowment Study in 2016 and is in a low-risk country, with competitive fiscal terms. This opportunity delivers on our exploration focus in conventional petroleum and will leverage our global deep-water development and operational expertise.”

BHP’s aggregate bid amount of US$625 million covers the drilling and seismic work required by the exploration work programs under the licence agreements over the six-year term. BHP’s minimum commitment under the licence agreements is for US$157 million.

These very clear infographics provided by OEA consulting provide an insightful look at the potential of the region. It is predicted that with new exploration wells, oil discovery is imminent. Ramping up in 2019, 2020 is expected to be a record-breaking year for activity offshore.