Today, the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, released the 2020 oil and gas resource assessment results which identify an additional 11.1 billion barrels of oil and 24.5.trillion cubic feet of gas potential offshore Newfoundland. In total, there is a combined resource potential of 63.6 billion barrels of oil and 224.1 trillion cubic feet of gas in just 10 per cent of the province’s offshore.
The assessment was led by the Oil and Gas Corporation of Newfoundland and Labrador and conducted by Beicip-Franlab, a leading independent company in doing resource assessments globally, in advance of the call for bids on November 4, 2020. More information can be found in the backgrounder below.
Government is taking a systematic, scientific approach to understanding the province’s oil and gas resource potential. By leading the collection of new data in the early stages of the exploration cycle and providing extensive information about the offshore oil and gas resource potential, new areas for industry exploration and future resource development opportunities are being opened offshore. To assist companies in achieving their exploration objectives, just last week the province announced the establishment of a new offshore exploration initiative to encourage near term drilling activity and enhance global competitiveness at this critical time.
The oil and gas industry plays an important role in the growth and development of Newfoundland and Labrador’s economy. From 2010 to 2017, total (direct, indirect and induced) economic benefits related to the offshore industry in this province accounted for nearly 30 per cent of our GDP, 13 per cent of our labour compensation and 10 per cent of all employment. Newfoundland and Labrador’s offshore oil and gas industry also represents one of the lowest carbon per barrel footprints in the world. It has contributed more than $22 billion in royalties (to the end of 2019) to the province and directly employs over six thousand people as well as thousands more in supporting industries (at the end of March 2020).
Click here to download a copy of the resource assessment. For more information on the 2020 independent resource assessment see the backgrounder below.
Quotes
“The magnitude of Newfoundland and Labrador’s resource potential continues to grow exponentially. Our offshore projects are already among some of the lowest carbon intensity emitting facilities in the world. The global outlook for energy is changing and a greening of fossil fuels is anticipated. We are committed to a strong and vibrant offshore oil and gas industry to help ensure some of the lowest emission production can continue to be part of the global energy mix.”
Andrew Parsons
Minister of Industry, Energy and Technology
“For the first time in our offshore, 90 per cent of the license round is covered with 3D seismic data and the remaining 10 per cent is covered by 5×5 2D which has provided us with an enhanced level of certainty in these resource numbers. The significant amount of data covering the area and the evolution of information gathering has presented greater imaging and a deeper understanding of the resource density, enabling us to identify over 40 prospects in an area.”
Jim Keating
Executive Vice President, Offshore Development
“Beicip-Franlab has carried out detailed interpretations of past and new data, well and seismic, in the Orphan basin. The data integration allowed the use of leading edge modeling techniques to rigorously assess uncertainty and risk, through equiprobable resources scenarios. Preliminary exploration efforts had not identified accumulations but our new comprehensive analysis of the petroleum system confirms the existence of significant hydrocarbon potential in the area.”
Jean Burrus
CEO, Beicip-Franlab
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Learn more
Nalcor Energy – Oil and Gas Exploration
Provincial Government Announces New Offshore Exploration Initiative
Oil and Gas Industry Recovery Task Force Focuses on Immediate Actions
Media contacts
Lisa Lawlor
Industry, Energy and Technology
709-729-5777, 631-8155
lisalawlor@gov.nl.ca
Leona Barrington
Nalcor Energy-Oil and Gas
709-737-4244, 699-8035
leonabarrington@nalcorenergy.com
Gaël Lecante
Beicip-Franlab HQ
+33 (0)1 47 08 82 32, +33 (0)6 23 92 24 58
Gael.LECANTE@beicip.com
BACKGROUNDER
2020 Independent Resource Assessment
This year’s independent resource assessment is based on new data covering six parcels on offer in the Orphan Basin (parcels NL20-CFB01-06 to 11) within the area of the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) 2020 Eastern Newfoundland Call for Bids. The upcoming license round includes a total of 17 parcels.
This is the province’s fifth scheduled license round. Future license rounds scheduled through 2024 will follow the same process with detailed resource assessments being conducted and released prior to bid closing.
The resource assessment is based on multiple scenarios of geological models. All scenarios were calibrated to well and seismic data collected with partners TGS and PGS which provided a robust range of outcomes. Detailed technical work defined the nature and extent of the findings and further details are contained in the assessment report.
Newfoundland and Labrador’s offshore spans 1.8 million square kilometers with its oil reserves emerging as some of the most carbon-competitive in the world. The 2020 license round area is located approximately 250 kilometres north-northeast of St. John’s in water depths ranging from 270 to 3,100 metres. The call includes 17 parcels of land and a total of 4,170,509 hectares. Six of the parcels in the Orphan Basin area are newly posted acreage and are the focus of the 2020 Independent Resource Assessment covering 15,000 square kilometres.