Chevron Canada Ltd., a big player in Canada's offshore oil industry, has struck a deal with Norwegian and Spanish oil companies to carry out exploration off the coast of Atlantic Canada.
The announced agreement with Statoil and Repsol will boost exploration in the Orphan and Flemish Pass basins off the coast of Newfoundland and Labrador.
The companies plan to drill an exploration well in the Orphan Basin this year, in deep water more than 400 kilometers northeast of St. John's. Chevron will be the operator with a 65% equity interest. Repsol will have 20% and Statoil will have 15%.
Chevron, Statoil and Repsol were also recently named the successful bidders on two exploration parcels in the Flemish Pass basin. Statoil will be the operator with a 50% equity interest. Chevron has 40% and Repsol has 10%.
These agreements significantly strengthen our exploration position in Atlantic Canada, Chevron Canada president Jeff Lehrmann said in a press release.
Meanwhile, Chevron and Statoil have finalized a separate deal to explore for energy in the Canadian part of the Beaufort Sea.
Chevron is one of Canada's major oil companies, with stakes in oil sands projects and shale gas developments in Alberta and a minority interest in the Hibernia development off Newfoundland.
The Calgary company also has resource interests in the Mackenzie Delta and Beaufort Sea in the western Arctic and a refinery and gas station network in British Columbia.
Chevron Canada is a unit of California-based Chevron Corporation, one of the world's biggest integrated oil companies.