Nova Scotia parcels attract hefty bidding

May 10, 1999
A group of Mobil Oil Canada Ltd., Shell Canada Ltd., and Imperial Oil Resources Ltd. bid nearly a third of the total $592.5 million (Canadian) in work commitments offered for 19 of 20 exploration licenses covering about 2.2 million hectares off Nova Scotia. The group grabbed up licenses for six parcels (Nos. 3-8) with bids totaling $189.9 million. One parcel (No. 2) received no bid.

A group of Mobil Oil Canada Ltd., Shell Canada Ltd., and Imperial Oil Resources Ltd. bid nearly a third of the total $592.5 million (Canadian) in work commitments offered for 19 of 20 exploration licenses covering about 2.2 million hectares off Nova Scotia.

The group grabbed up licenses for six parcels (Nos. 3-8) with bids totaling $189.9 million. One parcel (No. 2) received no bid.

Novia Scotia Premier Russell MacLellan announced results of the licensing round at last week's Offshore Technology Conference (see related story, p. 21). Offshore bidding was managed by the Canada-Nova Scotia Offshore Petroleum Board, which oversees offshore activity.

MacLellan said that results of the sale represent the single largest investment in offshore exploration in the history of Nova Scotia. The round also elicited the largest single bid for an offshore Nova Scotia parcel. In addition, Parcels 16-20, in 2,500-4,000 m water depths, represent some of the deepest water to date for exploration in the region.

Meanwhile, also at OTC, Newfoundland and Labrador Premier Brian Tobin said that the Canada-Newfoundland Offshore Petroleum Board, which manages petroleum in the Newfoundland offshore area, issued a call for bids for 10 land parcels covering 1.3 million hectares. The bidding closes Nov. 17, 1999.

Sale details

The single largest bid for an offshore license was nearly $93.3 million, submitted by PanCanadian Petroleum Ltd., Marathon Canada Ltd., Murphy Oil Co. Ltd., and Norsk Hydro Canada Oil & Gas for Parcel 11.

Overall, Imperial alone bid nearly $138 million, including about $100 million for Parcels 12 and 13 by Imperial Oil Resources Ventures Ltd.

Shell Canada bid nearly $107 million; Mobil, more than $86.6 million.

Other bidders were PanCanadian, $57.9 million; Marathon, $56.6 million; Murphy Oil, nearly $37.4 million; Chevron Canada Resources Ltd., more than $31 million; Norsk Hydro, almost $20.5 million; and Canadian 88 Resources Ltd., nearly $30 million.

Smaller winning bids were offered by Richland Minerals Inc. ($2.2 million) and Corridor Resources ($1.05 million).

Copyright 1999 Oil & Gas Journal. All Rights Reserved.