Shell Canada Ltd. has advised partner Suncor Energy Inc. that drilling of the first exploration well on the Shelburne basin 250 km offshore Halifax, NS, has been completed and is noncommercial.
As a result, Suncor in the third quarter will write off its share of the well’s cost, which, under the commercial terms of the firm’s farm-in agreement, is expected to be $105 million (Can.) aftertax.
Joint venture participants in the deepwater project are operator Shell Canada with 50% interest, ConocoPhillips Canada East Coast Partnership 30%, and Suncor 20% (OGJ Online, June 11, 2014).
