The worst-kept secret in Newfoundland and Labrador’s oil trade has been showed: an exploration drilling marketing campaign this summer time within the Flemish Go Basin has ended in new discoveries.
The effects will most likely elevate hopes about the way forward for the Bay du Nord mission, which was once deferred in March on account of the worldwide COVID-19 pandemic and collapsing oil markets.
However Equinor isn’t making any commitments.
“It’s too early to touch upon any attainable affect of the invention at the standing of the deferred Bay du Nord building mission,” an Equinor legitimate wrote in a commentary to CBC Information.
“Equinor continues to evaluate the possibility of Bay du Nord building mission and the higher Flemish Go Basin.”
Equinor issued a information unencumber Thursday acknowledging that wells drilled at possibilities referred to as Cappahayden and Cambriol have been a success, however that it is too early to supply explicit data on volumes.
“We’re happy to have made two discoveries offshore Newfoundland,” Paul McCafferty, Equinor’s senior vice-president for world offshore exploration, is quoted as announcing within the unencumber.
Equinor declined an interview request.
Wells have been drilled in deep waters
The wells have been drilled by way of the Transocean Barents, a rig referred to as a harsh atmosphere, ultra-deepwater semi-submersible.
The rig arrived at Bay Bulls this week, and is recently demobilizing sooner than crossing the Atlantic Ocean for Norway in early November.
Equinor is a 60 in step with cent spouse within the two possibilities, with BP Canada proudly owning 40 in step with cent.
The wells are situated 500 kilometres east of St. John’s. The Cappahayden neatly has a water intensity of about 1,000 metres, whilst Cambriol has a intensity of 600 metres.
Equinor says it additionally drilled what is referred to as a “top-hole” at every other prospect referred to as Sitka.
When requested if additional exploration might be performed subsequent yr, the spokesperson wrote: “Equinor is recently comparing subsequent steps associated with attainable long run actions within the Flemish Go Basin.”
The discoveries come at a time of disaster for the Newfoundland offshore, which has been hit arduous by way of the combo of a world pandemic, and vulnerable and unsure oil markets.
Equinor introduced in March that it was once deferring Bay du Nord with a view to discover tactics of creating the mission viable in an technology of low oil costs.
Three different discoveries made in house
The mission grew out of 3 previous discoveries referred to 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 way of rival Cenovus.
Husky didn’t reply to a query about the way forward for its hobby in the Bay du Nord mission.
In step with Equinor’s web page, an funding choice on Bay du Nord might be made in 2021, with first oil to be produced in 2025 the use of a floating, manufacturing, garage and offloading vessel very similar to the Terra Nova FPSO and the SeaRose FPSO.
The Cappahayden and Cambriol discoveries are shut sufficient to the Bay du Nord box to be hooked up by way of what is referred to as a subsea drill centre to an FPSO, so insiders say this might fortify the economics of the whole mission.
If authorized, a building within the Flemish Go Basin will be the first deepwater oil generating box in offshore Newfoundland, and the primary out of doors the legacy Jeanne d’Arc Basin, the place the Hibernia, Terra Nova, White Rose and Hebron fields are situated.
Equinor has stated the Bay du Nord mission may just generate $3.five billion in income for the Newfoundland and Labrador executive.